Copper rebounds on opportunity purchases after steep decline

Copper prices rebounded this Friday due to opportunity purchases, after the decline of the previous day caused by fears that solid US economic data would promote a tighter monetary policy.

At 1010 GMT, three-month copper on the London Metal Exchange (LME) was up 0.8% to $ 9,870 a tonne, after plummeting as much as 3.8% the day before.

The metal hit a record high of $ 10,747.50 in May, fueled by optimism about the global economic recovery and new demand from green markets.

Today it is rebounding due to the search for low prices. The general attitude remains positive towards industrial metals and commodities in general”Said analyst Carsten Menke from Julius Baer in Zurich.

Industrial metals fundamentals are good, but expectations have been excessive as to where prices should be based in the fundamental context”He added.

In China, prices fell to their lowest level in nearly six weeks. The most traded July copper contract on the Shanghai Futures Exchange lost as much as 3.6% to 70,470 yuan (US $ 11,001) a tonne.

After the number of new requests for unemployment assistance in the United States last week was lower than expected, the market awaits the non-farm payroll report for clues about the economic recovery and whether the Federal Reserve will withdraw the stimulus.

The price advance in the metals market was contained by a firmer dollar, which held near a three-week high, making raw materials more expensive for holders of other currencies.

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