Conjecture about whether the U.S. political system and can handle the threat posed by end-of-year tax increases and slashes to spending prompted copper futures to fluctuate on Wednesday, according to Bloomberg.
President Barack Obama and his Republican counterparts in Congress will have to negotiate their way through the fiscal cliff prior to the end of the year. Secretary Timothy Geithner with the U.S. Treasury expressed deep doubts about Republicans compelling the U.S. over that cliff. The U.S. trails only China as the globe's top consumer of the reddish metal.
"The fiscal cliff is a worry, but it will have to be resolved," trader Robert Montefusco with Sucden Financial Ltd. in London told the news source on Wednesday. "Everyone is expecting a solution."
At 9:49 a.m. on Wednesday, copper futures fell 0.07 percent, a 0.0025-cent loss to $3.4685 per pound.
The production of refined copper surged higher during the first 10 months of this year in Kazakhstan, according to Reuters, which cited data from the State Statistics Agency. That 10-month period saw increases of 8.5 percent as compared to the same period last year.
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