august 20, 2010
Copper fell for a second day in New York and London, paring this week’s gain, after reports sparked concern about the strength of the recovery in the U.S., the world’s second-biggest consumer of the metal.
Copper yesterday erased a climb to a 10-day high and closed lower as the Federal Reserve Bank of Philadelphia reported an unexpected contraction in manufacturing. Separate figures showed that more Americans applied for unemployment benefits, rather than the decrease economists had predicted.
LME copper is on course for a fourth weekly gain in five weeks. Rising prices and lower open interest, or the number of contracts outstanding, suggest that holders of short positions are exiting the market, according to Leon Westgate, an analyst at Standard Bank Plc in London. A short position is a bet on lower prices.
“Copper may be poised for a run higher as we head toward September,” he said in a report yesterday.
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