IV:Copper tumbles to 15-week low as Ukraine crisis deepens
Investing.com - Copper futures tumbled to the lowest level since November on Monday, as tension in the Ukraine flared over the weekend and amid ongoing concerns over the health of China’s economy.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery fell to a session low of $3.160 a pound, the weakest since November 21.
Copper prices last traded at $3.169 a pound during European morning hours, down 0.6%. The May copper contract lost 0.42% on Friday to settle at $3.187 a pound.
Futures were likely to find support at $3.146 a pound, the low from November 21 and resistance at $3.212 a pound, the high from February 28.
Geopolitical tensions mounted over the weekend after Ukrainian Prime Minister Arseniy Yatsenyuk said Sunday that his country was "on the brink of disaster" after Russia's parliament authorized President Vladimir Putin to use military force in Ukraine.
Ukraine has put its forces on combat readiness and U.S. President Barack Obama warned Russia not to intervene. The U.S. is also considering imposing sanctions, Secretary of State John Kerry said Sunday.
Meanwhile, lingering concerns over the health of China’s economy and a weakening Chinese Yuan dampened sentiment.
Data released over the weekend showed that China’s official manufacturing PMI fell to an eight-month low of 50.2 in February from 50.5 in January.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Investors now looked ahead to U.S. economic data later in the day for further indications on the strength of the economy and the future course of monetary policy.
The U.S. is to release data on personal spending, while the Institute of Supply Management is to release data on manufacturing activity.
A recent series of disappointing U.S. economic indicators have sparked concerns that the recovery has lost momentum since the end of last year as inclement winter weather weighed on growth.
The U.S. is second behind China in global copper demand.
Elsewhere on the Comex, gold for April delivery rallied 1.95% to trade at $1,347.20 a troy ounce, while silver for May delivery surged 1.75% to trade at $21.60 a troy ounce.
