Copper prices on the international market yesterday fell for a second consecutive session due to a stronger United States dollar.
Yesterday, the dollar gained on the yen as investors unwound safe-haven trades in the wake of the failed coup in Turkey, while a giant takeover bid in the technology sector, and the promise of central bank stimulus, lent support to equities.
Reuters reports that Zambia’s commodity export earner was 0.8 percentage point down.
“London copper fell for a second consecutive session on Monday, with a firmer dollar weighing on prices, although expectations of economic stimulus in top consumer China kept a floor under the market,” Reuters reports.
Three-month copper on the London Metal Exchange slid 0.8 percent to US$4,879.50 a tonne.
Commenting on the development, Beijing-based CRU analyst Chunlan Li attributed the decline in copper prices to the strong dollar weighing on the prices.
Ms Chunlan said a firmer dollar weighs on commodities priced in the US currency, making them more expensive for buyers using other currencies.
“The price action today [Monday] is more to do with investors taking profit and a stronger dollar weighing on prices. There is not much change in the fundamental situation, it is summer season and demand seasonally low,” she said.
Meanwhile, gold prices fell one percent yesterday due to fears by investors following the failed coup attempt in Turkey, while oil prices edged higher with the turmoil unlikely to hit energy supplies.
Spot gold, which fell over one percent to a low of US$1,323.7, was down 0.7 percentage point to US$1,328.60 an ounce