Copper fell again on Friday, setting it up for its longest streak of weekly declines since 2008. Bloomberg reported that flagging European economies and China's lower targets for growth next year may have been a significant contributor to the falling prices.
According to Bloomberg, copper for delivery in three months fell 1.2 percent to $6,624 a metric ton by 12:59 p.m. on the London Metal Exchange. Prices dropped 0.3 percent this week, and are headed for a seventh straight weekly loss. Futures for December delivery fell 1.1 percent to $2.9965 a pound on the Comex in New York.
Both China and Germany, respectively the largest and third largest copper importers in the world, are showing signs of weak demand and lower expectations for the future – keeping the price of copper down.
"When there is fear in the market, it is difficult to find buyers and the price starts sliding, and this is what we are experiencing for copper," said Naeem Aslam, chief market analyst at Ava Trade to the Daily Mail.
The Daily Mail also reported that in addition to the problems in China and the euro zone, the strong U.S. dollar and expectations that the Federal Reserve will slow down its asset-buying program are also putting downward pressure on the red metal.
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