Copper futures pushed slightly higher in value on Wednesday, propelled by the likelihood of the central bank of the U.S. driving toward a third round of quantitative easing and a German court approving the constitutionality of a regional bailout fund, Reuters reports.
The reddish metal's advance was tempered by concerns about prices rising too rapidly as China, the globe's top consumer of copper, is enduring economic challenges that are slowing growth and development. Thus far this month, copper futures have increased 6.4 percent. Their biggest day of gains was September 7 when the Asian nation approved roughly $150 billion-worth of projects to benefit its infrastructure.
"Despite recent optimism over stimulus programs by major economies, investors are getting a little panicky at these high copper prices. Copper demand by downstream industries in China is still weak, after all," analyst Zhou Jie with CIFCO Futures told the news source.
At 9:11 a.m. on Wednesday, copper futures fell 0.34 percent, a 0.0125 cent slip to $3.6845 per pound.
Copper futures are poised to track the downward drive of iron-ore during the past 60 days, states a note penned by commodities economist Ross Strachan with Capital Economics, according to MarketWatch.
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