Copper futures fell for the second straight day as a government report showing job growth trailed estimates triggered concerns that demand will falter in the U.S., the world’s second-biggest user of the metal.
Gold fell to a five-week low in New York as signs of economic recovery in the U.S. boosted speculation the Federal Reserve will further pare stimulus, curbing demand for the precious metal as a store of value.
Gold traders are setting their sights on $1,400 an ounce, a price not reached since September, as the worst standoff between the West and Russia since the end of the Cold War increases demand for the metal as a haven.
Copper dropped for a 10th day, heading for the longest losing streak since at least April 1986, on signs of weakening demand after manufacturing slowed in China and the U.S., the world’s top metals consumers.
Copper traders, analysts are bearish for 3rd wk on concern demand for metal in China, biggest user, will slow. * Survey results: Bullish: 6 Bearish: 11 Neutral: 2 * Copper rose 0.3% in Shanghai today as markets reopened after Lunar New Year holiday * “The return of China from holiday will do little in my view,” Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said by e-mail * “Market is suffering from emerging market concerns and nervous equities. In this atmosphere, copper will have a difficult time near-term. Traders seem to be ignoring LME inventory movements. Funds seem to have little interest in buying,” O’Neill said * NOTE: Copper stockpiles tracked by LME down 20% in past yr * Copper rose 1.3% this wk to $7,154.50/t
Copper prices are poised for a 10th session of losses of New York, extending the longest slump in 18 years, on signs of weakening demand after manufacturing slowed in China and the U.S., the world’s top metals consumers.