The most actively traded contract, for September delivery, fell US1cent, or 0.2 per cent, to settle at $US4.4030 a pound on the Comex division of the New York Mercantile Exchange. Economic storm clouds grew darker over Europe, where euro-zone members are struggling to make large debt payments amid a slow recovery that generates low tax revenues. Greece, which was the first among peripheral euro-zone economies to seek bailout aid, is now asking for more help. The cost of default insurance for Italian, Spanish, Irish, Portuguese and Greek government bonds has shot higher as concerns about the financial health of these countries roiled markets. “The European situation is certainly fraught with uncertainty and despite this, copper continues to be very strong,” Bill O’Neill, a principal with Logic Advisers. Copper prices are proving resistant to the acrid news as futures have declined just 0.8 per cent compared to the start of the year as global political concerns have yet to crimp demand forecasts. The red metal is widely used in everything from electric wiring in mobile phones and cars to plumbing in houses, and demand for the metal can wane when economic activity slows. Meanwhile, the US is no closer to a deal to raise the nation’s $US14.3 trillion borrowing limit. The White House and Republican Party leaders must reach an accord by August 2 or risk missing payments on some of the debt. “While extremely unlikely, (the prospect of a default) has nevertheless added another layer of confusion to an already uncertain and nervous market,” Leon Westgate, base metals analyst at Standard Bank, wrote in a note to clients. A stronger US dollar, which rallied versus the euro, is also keeping copper futures subdued. The euro was recently at $US1.4091, down from $US1.4150 late Friday in New York. Copper futures are denominated in US dollars and appear more expensive to traders using foreign currencies when the greenback rallies.

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