Copper futures dropped to their lowest price in about 16 weeks on Tuesday, pulled down by concerns about Greece's present debacle with inconclusive elections and the nation's questionable future as a member of the euro zone, according to Reuters.
The industrial metal's performance on Tuesday marks its third consecutive trading session of losses amid concerns that the situation in Greece will prove to be harmful to the world economy. The reddish metal is sensitive to global economic and financial situations due to its myriad uses in manufacturing, construction and other industries.
"It's an erosive process in the existing 'no-risk' atmosphere," said Bill O'Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey. "Until we get out of this gloom, commodities like the industrial metals and oil are not going to have any sponsorship."
At 3:26 p.m. on Tuesday, copper futures fell 1.62 percent, a 5.75 cent loss to $3.4965 per pound.
Dow Jones Newswires reports the industrial metal is set to notch its eighth drop in the past 10 trading sessions and the outlook for the reddish metal also is not very bright.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
