27 Jan 2015
Copper tanks 1% on rising inventory levels
FXStreet (Mumbai) - Copper prices fell back in red after recovering from five and a half year lows in the previous session amid increasing bets that China is ramping up its state reserves of copper by 20,000 tonnes.
The red metal trades at USD 2.518/ pound, down -1% on the day, consolidating above 2.50 levels. Copper remains cautious ahead of the FOMC 2-day meeting starting for later today. The red metal continues to trade downside amid a stronger greenback, weak global demand, rising inventory levels and China slowdown worries.
Copper stocks in LME warehouses rose by 1,700 tonnes on Monday to 236,850 tonnes up by a third since the start of the year. In Shanghai, copper inventories are up 27 percent to more than 130,000 tonnes.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.55, above which gains could be extended to 2.58 levels. Meanwhile, support is seen at 2.45 levels, below which it can extend losses to 2.40 levels.
The red metal trades at USD 2.518/ pound, down -1% on the day, consolidating above 2.50 levels. Copper remains cautious ahead of the FOMC 2-day meeting starting for later today. The red metal continues to trade downside amid a stronger greenback, weak global demand, rising inventory levels and China slowdown worries.
Copper stocks in LME warehouses rose by 1,700 tonnes on Monday to 236,850 tonnes up by a third since the start of the year. In Shanghai, copper inventories are up 27 percent to more than 130,000 tonnes.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.55, above which gains could be extended to 2.58 levels. Meanwhile, support is seen at 2.45 levels, below which it can extend losses to 2.40 levels.