Copper prices have recovered slightly from early-week lows. However, the red metal has once again fallen victim to concerns over the federal stimulus plans, sliding back from a 9-day high to $7,080.25 per tonne on the London metal exchange (LME).

 

Copper kicked off the first week of December sporting a low of $6,775 in London. By mid-week support in the form of positive U.S. jobs data sent prices rallying to $7,128.75. The dead-cat-bounce was short-lived, and investors have since revised their stance on the metal, with concerns that the Federal Reserve’s support for the American economy would result in lower metal demand.

 

The red metal is basing its losses today on U.S. unemployment claims and gross-domestic product figures that were better-than-expected. While these figures tend to offer support for the red metal as far as manufacturing activity is concerned, the Wall Street Journal writes that “traders at times this year have been more focused on the prospect that an improving economy will push the Federal Reserve to withdraw its stimulus.” That being said, any improvements in the economy would urge Federal regulators to curb the stimulus program which in turn weighs down the metals market.