Copper fell yesterday, hovering near two-month lows, as a deadlocked Italian vote stirred caution about an escalation of the euro zone’s debt crisis, with uncertainty over the outlook for demand also denting prices.
Benchmark three-month copper on the London Metal Exchange fell to $7 820.25 (R69 279) a ton at 10.17am London time, down 0.2 percent from Monday’s close. Prices were not far off two-month lows of $7 796 hit on Friday that pushed copper into negative territory for the year after erasing gains of nearly 5 percent seen earlier this month.
“The outcome of the Italian election is weighing on sentiment. The market was already selling off as investors have been taking profit from the January rally, with little indication of buying activity coming out of China,” VTB Capital analyst Andrey Kryuchenkov said. – Reuters