Copper retreats after breaking decade-old $10,000 level

Copper retreats after breaking decade-old $10,000 level

LONDON: Copper slipped on Thursday after briefly punching above the $10,000 level, last broken a decade ago, as speculators locked in profits amid worries about industrial demand.

Three-month copper on the London Metal Exchange touched $10,008 a tonne before retreating 0.3% to $9,847 a tonne by 1400 GMT.

The last time copper rose above $10,000 was in February 2011, when it touched a record of $10,190.

Copper and other financial markets got a boost after the U.S. Federal Reserve said on Wednesday it was too early to consider rolling back its emergency pandemic support.

But the market was vulnerable from the weight of bullish investors piling in, said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

“The two major risks that the market carries right now is that technically it is looking pretty overbought and also curbing demand from these price rises, especially in China, may take some sting out of the rally.”

Industrial buyers of copper were not happy. “Only mining companies and hedge funds with long positions are enjoying this price. Everyone else in the market is suffering. Specially the end-users,” a copper rod maker in China said.

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