ST: Copper price suffering from negative market mood
ABC reported that the price of copper has tumbled 30% in the last 6 weeks as investors sell off their holdings in the face of economic uncertainty.
As per report, copper rose from USD 1 per pound 6 years ago to a high of USD 4 per pound before falling back to USD 3.20.
Mr Carey Smith analyst with Alto Capital said that demand for the metal is still high and the price drop is driven by negative sentiment. Anything that can be sold is being sold.
He said that this is mainly traders thinking of what happened in 2008, with the global financial crisis and taking no risks. Copper is suffering because of that, as are most base metals.
