On Wednesday, the price of copper declined, as traders take profits after the previous session rally, following the weakening of the dollar.
During early London trading, on Comex division of the New York Mercantile Exchange, copper futures for March delivery lost 0.6 cents, or 0.28%, to $ 2.063 a pound. A day earlier, prices jumped 4.7 cents, or 2.35%.
Meanwhile, on London Stock Exchange, the three-month copper contract fell 0.84% to $ 4582.25 per ton. On Tuesday, prices jumped by 2.57%.
Despite the Tuesday rapid rise, the price of the red metal remains near six-year lows of last week, as the possibility of raising interest rates in the US and slowing growth in the world economy, in particular Chinese, are putting pressure on industrial metals.
Prices of the red metal have fallen by more than 10% this month, as fears of a China-led global economic slowdown and a stronger dollar undermined sentiment.
Today, gold continues to rise, as geopolitical uncertainties, which arose between Russia and NATO member Turkey, has strengthened demand for gold.
On Tuesday, Turkish air fighters shot down a Russian military plane near the Syrian border after Turkish airspace violations. Nevertheless, the Russian Defense Ministry said that the downed fighter did not violate the borders of Turkey.
Today, on the eve of Thanksgiving, the US will publish a series of economic reports, including data on applications for unemployment benefits, data on orders for durable goods, data on personal spending, and the volume of home sales in the primary market.
Data released on Tuesday showed that the US economy grew in the third quarter more than initially anticipated, increasing the likelihood of raising rates next month.
In November, gold futures lost 5% amid expectations that the Fed will raise interest rates for the first time in almost ten years, at their meeting in mid-December.
Expectations of an increase in interest on loans had a negative impact on the precious metal because it cannot compete with the profitable assets in a period of growing rates.
The US dollar retreated somewhat from an eight-month high against a basket of six other major currencies, as investors take profits after a recent rally of the US currency on the eve of Thanksgiving Day on Thursday.
In the coming Thursday the US markets will be closed in honor of Thanksgiving Day and on Friday it will operate on a reduced schedule.