SF: Copper Prices Fluctuate in New York on Outlook for U.S. Economy
Sept. 20 (Bloomberg) -- Copper futures fluctuated as traders weighed a weaker dollar against speculation that an uneven U.S. economic recovery will damp industrial-metal demand.
The Federal Reserve is expected to keep borrowing costs at record lows tomorrow to bolster the economy. Confidence among U.S. homebuilders in September held at the lowest level in more than a year, a private report showed. Earlier, copper reached $3.5555 a pound, the highest price since April 26, as the dollar fell as much as 0.4 percent against a basket of six currencies.
"The deterioration in the economic situation leaves copper vulnerable to the downside," said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. Declines in the U.S. currency will limit the metal's drop, he said.
Copper futures for December delivery were down 0.1 cent to $3.521 a pound at 10:46 a.m. on the Comex in New York, after dropping as much as 0.4 percent and climbing 1 percent.
Demand for copper will continue to rise in Asia, analysts said. China is the world's largest metals consumer.
"Economic activity here in the U.S. may be weaker than hoped for, but the economic strength of Asia is stronger," said Dennis Gartman, an economist and the editor of the Suffolk, Virginia-based Gartman Letter. He purchased copper on Sept. 17.
On the London Metal Exchange, copper for delivery in three months rose $18.25, or 0.2 percent, to $7,738.25 a metric ton ($3.51 a pound).
