Copper prices take a beating

In spite of the brief upside moves yesterday following better eurozone economic growth, and the upbeat picture painted by Mario Draghi, copper prices have dropped to their lowest since late July.

News that Chinese solar panel maker Shanghai Chaori Solar has defaulted on a corporate bond has seen selling take place in large volumes.

Prices have had difficulty breaking through the $3.25/lb level in the past three weeks. The emergence of the stronger dollar in the wake of better-than-expected non-farm payrolls number, coupled with the overall lack of conviction to break higher, has seen the pressure on copper prices escalate.

The four-hour chart is indicating that selling momentum is still strong, but given that prices are looking quite oversold we may see a degree of support come in at $3.08/lb.

The selloff has not been restricted to copper; gold and nickel have also suffered losses today.

High grade copper chart

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