Copper futures hovered near a two-week high amid speculation that some hedge funds were buying back the metal after betting on a price drop this quarter. Meanwhile, gold futures touched the weakest price in six weeks, while silver futures dropped to a 1-1/2-month low.
On the Comex division of the New York Mercantile Exchange, copper futures for settlement in May surged by 1.04% to trade at $2.996 a pound by 12:33 GMT. Prices shifted in a daily range between $3.002, near the two-week high of $3.018 registered on March 25, and $2.963 a pound. The metal is still down 6.1 percent this month, heading for the biggest such drop since June. On March 19, prices touched $2.877 a pound, the weakest level since July 2010.
“There’re some position squaring moves by hedge funds before the end of the month and the quarter,” said Kazuhiko Saito, a Tokyo-based analyst at commodities broker Fujitomi Co., cited by Bloomberg. “The current price level may also boost physical demand.”
Copper prices drew support after it became clear that South Korea is seeking to buy 2 000 tons of the metal in a tender on April 4th.
However, the metal has lost 11% this quarter, the most since the three months through September 2011, on concern economic growth is faltering and default risks are increasing in the world’s largest consumer, China at a time when global supplies are piling.
According to data compiled by the metals researcher CRU, the global surplus of copper may reach 140 000 tons in 2014, almost four times larger than previously estimated as demand in the biggest consumer, China, slows.
Meanwhile, gold futures dropped to the weakest level in six weeks as further signs of recovery in the US backed the case for the Federal Reserve to keep cutting stimulus.
On the Comex division of the New York Mercantile Exchange, gold futures for settlement in June fell by 0.54% to trade at $1 296.40 an ounce by 12:34 GMT. Prices shifted in a daily range between $1 307.40 an ounce and $1 292.10 an ounce, the weakest level since February 13th.
Gold has fallen almost 2% since March 19, when Federal Reserve policy makers trimmed their bond-buying program by another $10 billion to $55 billion per month and Fed Chair Janet Yellen said that the first increase in borrowing costs should come “around six months” after the end of the stimulus program. The monetary easing program is expected to be brought to an end this fall.
Elsewhere on the Comex, silver futures for May delivery fell by 0.57 percent to trade at $19.668 an ounce by 12:35 GMT. Earlier, the price touched $19.580 an ounce, the weakest level since February 5. Platinum futures for July declined 0.23 percent to trade at $1 404.30 an ounce. Palladium futures for June delivery fell by 2.32 percent to $763.00 an ounce. On March 24, the price touched $802.40 an ounce, the strongest level in 2-1/2 years amid concern the sanctions on the largest supplier of the metal, Russia may reduce supplies.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
