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Copper in Bearish Correction Following Record Fall

January 14, 2015 at 15:29 by Andriy Moraru

Copper is currently showing its biggest daily gain since late November as the metal is recovering some of its recent losses, which are huge in fact. The outlooks for slower growth in China and for cheaper energy are driving the commodity down since 2011, but it is only since November 2014 when the fall has turned into a massive bearish rally for copper.

As of today, copper is holding the title of the worst performing exchange-traded metal of the year 2015. There are three factors that can potentially stop this decline. One is the technical correction, which we apparently are seeing today. The second one could be some piece of unexpectedly good news on Chinese or US manufacturing output. The third one is the curb in production that will eventually follow any significant price drop as the metal becomes less and less profitable for mining.

Copper is currently trading near $2.5658 per pound on COMEX as of 15:29 GMT after opening at $2.5158 today. The growth is still insignificant compared to 10% decline and the $2.46 low of yesterday.

If you have any questions and comments on the commodities today, use the form below to reply.

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