Copper moves away from six-week highs

FXStreet (Mumbai) - Copper prices on Comex erased previous gains and edged lower as traders sold-off the red metal in a bid to lock-in gains after the rally seen yesterday.

Copper inches towards lows

The red metal trades at 2.627 levels, recording a -0.49% loss on the day, having previously posted day’s low at 2.617 and day’s high at 2.645 levels. Copper prices edged lower as traders booked profit after the red metal surged to six week highs in the previous session. Copper prices edged lower despite better than expected Chinese PMI data with its reading reaching a four month high. Moreover, a board based sell-off in the US dollar also fails to lift copper prices.

Meanwhile, rising global inventories continue to weigh on copper prices. Copper inventories monitored by the London Metal Exchange rose to 299,675 tonnes, the highest level since February 2014 and up 69% this year.

Copper Technical Levels

Copper prices have an immediate resistance located at 2.645, above which gains could be extended to 2.66 levels. Meanwhile, support is seen at 2.60 levels, below which it can extend losses to 2.586 levels.

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