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.
Expectations of continued easy monetary policy in the United States, and hopes for the European Central Bank to step in to prop up the sluggish economy, are bolstering copper demand worldwide.
More strong US economic data is keeping the bulls content, but worries about Chinese demand is keeping the red metal range-bound this week.
Bloomberg reports that Chile’s peso gained for the first time in five days as copper.
The Canadian Press reports that copper, platinum and palladium are advancing amid expectations that the economy could be growing stronger.
Reuters reports that U.S. copper futures trimmed losses as the dollar stumbled after the Federal Reserve said it would buy $600 billion of longer-term Treasuries by the end of the second quarter of 2011.
U.S. copper futures finished lower on Tuesday, as investors exercised caution ahead of the Federal Reserve's monetary policy meeting. Copper has backed off its recent multi-year high, as a result of concerns over the recovery it the world’s second largest copper consumer- the United States of America.
By Leia Michele Toovey- Exclusive to Copper Investing News This week on the London Metal Exchange, the industrial metals rallied. Copper for delivery in three months jumped $525, or 13 per cent, to $4,655 a metric ton. Aluminum advanced 2.7 per cent, nickel 7.8 per cent and zinc 7 per cent. This was a welcome [...]
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