20 Jan 2015
Copper erases gains on global growth concerns
FXStreet (Mumbai) - Copper futures on Comex shaved off Chinese growth data induced gains and edged lower as global growth concerns resurface.
The red metal trades now at USD 2.602/ pound, down -0.59% on the day, having hit intraday high at 2.615 levels earlier in the day. Copper gave away gains as traders now weigh the International Monetary Fund’s (IMF) move of slashing its 2015 global growth forecast to 3.5% from an earlier estimate of 3.8%, its steepest cut in three years. The IMF also trimmed China outlook to 6.8% from 7.1%.
Moreover, rising copper stock levels at the LME warehouse for the second straight session reflects signs of weakening demand for the red metal, which is also likely to be a drag on the prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.628 (Jan 19 high), above which gains could be extended to 2.634 (Jan 16 High) levels. Meanwhile, support is seen at 2.557 levels, below which it can extend losses to 2.541 levels.
The red metal trades now at USD 2.602/ pound, down -0.59% on the day, having hit intraday high at 2.615 levels earlier in the day. Copper gave away gains as traders now weigh the International Monetary Fund’s (IMF) move of slashing its 2015 global growth forecast to 3.5% from an earlier estimate of 3.8%, its steepest cut in three years. The IMF also trimmed China outlook to 6.8% from 7.1%.
Moreover, rising copper stock levels at the LME warehouse for the second straight session reflects signs of weakening demand for the red metal, which is also likely to be a drag on the prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.628 (Jan 19 high), above which gains could be extended to 2.634 (Jan 16 High) levels. Meanwhile, support is seen at 2.557 levels, below which it can extend losses to 2.541 levels.