Copper hits three-month low

Copper has continued its declines today, dropping to the lowest level since early August.

Copper was broadly trading within the 320 and 330 cents-per-pound range in September and October, but since the start of November the metal has been in decline.

The drop in the price of copper has been accelerated by a lack of clarity from the Communist Party of China during the week. Over the past few months investors have been concerned about China’s growth, in particular the credit market. Since the Third Peplum committee’s closed-door four-day meeting, a series of reforms have been expected, but since the government has failed to clearly outline these changes it has put further pressure on the price of copper.

Janet Yellen of the US Federal Reserve is currently testifying at a confirmation hearing before the Senate Banking Committee, in order to take over from Ben Bernanke in the new year. When Ms Yellen was appointed to the role of future chairwoman, traders assumed that tapering would not take place until the first quarter of 2014 but stronger-than-expected non-farm payrolls figure in October imply it could happen as soon as December.

High grade copper chart

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by analysts