GREY:NEVDQ - Post by User
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bogfiton Nov 17, 2021 12:16pm
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What's up with copper prices?
What's up with copper prices?LONDON, Nov 17 (Reuters) - Copper prices fell for a third day on Wednesday as expectations of U.S. interest rate rises lifted the dollar to 16-month highs, making metals priced in the greenback costlier for buyers with other currencies.
Benchmark copper CMCU3 on the London Metal Exchange (LME) was down 1% at $9,462 a tonne at 1213 GMT.
Prices of the metal used in construction and to conduct electricity hit a record high of $10,747.50 in May but have since lost momentum as economic growth slowed.
The dollar was steady on Wednesday but has surged in the last week as strong U.S. economic data and high inflation lead many investors to expect a U.S. rate hike as early as mid-2022.
That has dragged copper towards its 200-day moving average, a key technical indicator currently at $9,408 a tonne, said Saxo Bank strategist Ole Hansen.
"If we close below that level, we could see the market reverse down to $9,000," he said, but added that prices were unlikely to fall far because demand will rise as the world builds infrastructure for electrification.
https://www.nasdaq.com/articles/metals-dollar-surge-pushes-down-copper-prices
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