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Global Economy Slows Down, Copper Goes Lower

October 19, 2011 at 1:10 by Vladimir Vyun

The global economic turmoil and uncertainty about the recovery reduce appeal of commodities to traders. Copper, like most other industrial metals, dropped on the mounting signs of a slower recovery.

China’s gross domestic product expanded 9.1 percent in the third quarter from a year ago, showing the slowest pace of growth since 2009. The conditions for New York manufacturers worsened as was shown by the Empire State Manufacturing Index that was at -8.5 in October. The ZEW Indicator of Economic Sentiment for Germany declined to -48.3 in October from -43.3 in the previous month.

December futures for delivery of copper fell 0.5 percent to $3.36 per pound by 13:21 on COMEX. The prices have declined 26 percent in the three months ended September 30, posting the biggest quarterly drop since the end of 2008.

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

6 Responses to “Global Economy Slows Down, Copper Goes Lower”

  1. MK

    Hi, Where do you see the dec settlement in copper? Is the demand so poor that prize can go cross over the recent low?
    Regards

    [Reply]

    enivid Reply:

    Currently Copper doesn’t show any tendency for bullishness. Not sure if we are set to renew recent lows, but I wouldn’t expect any rallies here for as long as the Europeans don’t come up with a real solution for their financial and fiscal problems.

    [Reply]

  2. MK

    Hi,Thanks for your revert on copper, pls also reason of correction in gold in last two day, how will this impacted if europe get some solution on debt crises! Regards

    [Reply]

    enivid Reply:

    The gold is more dependant on promises of money from Fed and other central banks. Currently it seems to be more affected by the technical analysis: last two days is the bounce off the 50-EMA.

    [Reply]

  3. MK

    So you mean gold is also in negative outlook for short term,

    [Reply]

    enivid Reply:

    For me, it is.

    [Reply]

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