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26 Jan 2015
Copper retreats from fresh 5-1/2 yr lows
FXStreet (Mumbai) - The industrial metal recovered partial losses after having slumped to fresh five and a half year lows earlier in the day as traders continued to weigh uncertainties over policies of Greece’s prime minister-elect and hence the country's future in the euro zone.
The red metal trades at USD 2.471/ pound, down -1.23% on the day, having hit fresh 5-1/2 year lows at 2.42 levels in the Asian hours. Copper remains pressured on weak global demand and a deteriorating world economy. A fresh sell-off was triggered today after the red metal breached the previous 5-1/2 year low recorded last week.
Moreover, rising inventory levels at LME warehouse indicates lack of physical demand which further dragged copper prices down. Inventories tracked by the LME rose 4.3% to 235,150 tons on Jan. 23, the highest in almost nine months, according to LME data. Copper stockpiles monitored by the exchange have soared 33% since the start of the year.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.5, above which gains could be extended to 2.6 levels. Meanwhile, support is seen at 2.42 levels, below which it can extend losses to 2.3 levels.
The red metal trades at USD 2.471/ pound, down -1.23% on the day, having hit fresh 5-1/2 year lows at 2.42 levels in the Asian hours. Copper remains pressured on weak global demand and a deteriorating world economy. A fresh sell-off was triggered today after the red metal breached the previous 5-1/2 year low recorded last week.
Moreover, rising inventory levels at LME warehouse indicates lack of physical demand which further dragged copper prices down. Inventories tracked by the LME rose 4.3% to 235,150 tons on Jan. 23, the highest in almost nine months, according to LME data. Copper stockpiles monitored by the exchange have soared 33% since the start of the year.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.5, above which gains could be extended to 2.6 levels. Meanwhile, support is seen at 2.42 levels, below which it can extend losses to 2.3 levels.