Copper is falling ahead of the release of April's US jobless data, with many analysts expecting weakness in the critical labor market. A new Indonesian mining tax, however, is expected to have limited impact on mining giants already operating in the country.
The Federal Reserve's confirmation that it will keep rates low until later next year has buoyed demand for copper. Investors will be closely monitoring the balance of supply and demand in global markets as well as the financial situation in Europe and China in order to gauge the red metal's price moving forward.
Stronger US manufacturing and job growth are pushing up demand for copper even though Chinese demand may falter as the real estate sector cools down.
Copper prices were weighed down amid of the expectation of another recession in Europe despite the latest Greek bailout package. China's sluggish manufacturing sector too is putting downward pressure on red metal.
The penny costs more to produce than it is actually worth, and the US Mint is looking to cut back on copper content to keep prices down.
Copper reached its lowest level in three weeks as Greece failed to secure its second financial aid package.
Investors look to China for clues on copper's moves, with a push for more affording housing pushing up prices on the one hand, while inflation fears keep prices in check on the other.
The world's biggest publicly traded copper producer has beat expectations despite major strikes, and copper producers are looking to brighter results.
Barclays Capital may have weathered spectacular losses by two of its copper traders, but the market is no stranger to maverick dealers.
It has been a roller-coaster year for copper, rattled by the Eurozone crisis and a slowdown in China. But supply remains tight as output is shaky.
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