Forexpros – Copper futures fell to a two-day low on Thursday, as market sentiment continued to be dominated by ongoing uncertainty over Greece’s planned referendum on its bailout deal.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.513 a pound during European morning trade, tumbling 1.89%.
It earlier fell by as much as 2.65% to trade at USD3.474 a pound, the lowest price since November 1.
Concerns over a Greek debt default intensified after French President Nicolas Sarkozy and German Chancellor Angela Merkel told Greek Prime Minister George Papandreou Wednesday that Athens will surrender all European aid if it votes against the bailout package agreed upon last week.
European Union President Jean-Claude Juncker said earlier Thursday that euro zone leaders were working on a possible exit of Greece from the single currency bloc.
“This is not my favored scenario. I would like Greece to stay on board but Greece must fulfill its obligations,” he said.
Meanwhile, the Federal Reserve on Wednesday cut its growth forecasts for the U.S. economy for next year and estimated unemployment will average between 8.5% to 8.7% in the final quarter of 2012.
Speaking at a post-policy meeting press conference, Fed Chairman Ben Bernanke said that economic growth was “frustratingly slow” and “very unsatisfactory.”
Copper prices came under further pressure after data showed that China’s service sector grew at a slower pace in October. A purchasing managers’ index fell to 57.7 from 59.3 in September. The gauge includes construction.
Copper is sensitive to the economic outlook because of its widespread uses across industries. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.
Elsewhere on the Comex, gold for December delivery added 0.35% to trade at USD1,735.55 a troy ounce, while silver for December delivery eased down 0.08% to trade at USD33.91 a troy ounce.
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