SG:Copper pares first weekly gain in five before US jobs report
Bloomberg reported that copper pared the first weekly climb in five as the dollar strengthened after European policy makers signaled borrowing costs will be kept lower for longer and as investors awaited US employment data.
Metal for delivery in three months on the London Metal Exchange declined as much as 1.3% to USD 6,862.50 per tonne and was at USD 6,872 in Shanghai. The price rose 1.8% this week, the most since the week ended May 3.
Mr Mario Draghi president of European Central Bank pledged to keep interest rates at a record low for an extended period after Mr Mark Carney chief of Bank of England said increases in market rates weren’t warranted. The Dollar Index, which tracks the greenback against six major peers, jumped 0.8 percent, the most in two weeks.
US Labor Department data may show that companies added 165,000 positions last month after increasing them by 175,000 in May.
Mr Cao Yanghui an analyst at Nanhua Futures Company said that “The strong dollar is adding further pressure on copper amid an already weak demand picture.”
Copper for delivery in October on the Shanghai Futures Exchange declined 0.6% to CNY 49,820 per tonne. Metal for delivery in September on the Comex fell 1.4% to USD 3.1310 per pound.
