The emboldened U.S. dollar pulled down the price of copper futures on Friday, according to Reuters.
China, the globe's top consumer of the reddish metal, advised against easing limits on growth in the property sector. The U.S., the world's second largest user of the industrial metal, continued demonstrating signs of difficulties and challenges as it leads the recovery from the Great Recession.
"This is exactly what we can expect as long as the only momentum is short covering," analyst Gayle Berry with Barclays Capital told Reuters. "At some point we will get a trigger that's going to break prices out of these ranges. But because it's not obvious in what direction that trigger will take us it's very risky to take a directional position. Until we get a clear macro picture people are going to keep positions very light."
At 10:16 a.m. on Friday, copper futures dropped 2.33 percent, a 0.0825 loss to $3.452 per pound.
MarketWatch reports the price of copper has performed more strongly thus far this year than two other metals – gold and silver. That could mean an economic rebound is afoot as the industrial metal is sensitive to economic and financial developments.
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.
