Copper prices rebounded from six year lows

20.08.2015

On Thursday, copper prices rose for the first time in six sessions, retreating from a six-year low, as the minutes of the July meeting of the Fed undermined expectations of a rate hike in September.

The growth delays as investors continue to monitor the dynamics of the Chinese stock market.

On the Comex division of the New York Mercantile Exchange, copper for September delivery rose 2.1 cents, or 0.92%, to $ 2.297 a pound during morning trade in London.

A day earlier, copper fell to $ 2.260, the lowest level since July 2009, before closing at $ 2.276, down 1.1 cents, or 0.48%.

The minutes of the Fed meeting in July, published on Wednesday, showed that Central Bank officials continued to express concerns over the low level of inflation and the weakness of the global economy, which resulted in some skepticism of some investors about the rate hike in September.

Protocols also made it clear that the officials responsible for the monetary policy of the central bank are concerned about "the recent decline in oil prices and the likelihood of adverse environmental effects from the slowdown in economic growth in China."

On Thursday, the Shanghai Composite Index has fallen 2.2%, before returning losses after noon, but then fell again in the last hour of trade and closed the session lower by 3.4%.

Chinese stock markets have fallen sharply earlier in the week, amid growing concerns about the state of the Chinese economy and fears that policymakers may allow the Yuan to continue to depreciate, raising concerns about a possible currency war that could destabilize the world economy.

Market participants are concerned that the fall in the stock market could spread to other sectors of the Chinese economy, threatening China's demand for industrial metals.

China is the world's largest consumer of copper, accounting last year for almost 40% of world consumption.

Gold futures for December delivery rose $ 10.60, or 0.94%, getting to a five-week high at $ 1138.60 per troy ounce.

On July 24, gold prices collapsed to 5.5-year low of $ 1072.30 on speculation that the Federal Reserve in September will raise interest rates for the first time since 2006. However, since then prices have recovered by about 6%, as hopes for a speedy rate increase dropped.

Later today, the US will release data on applications for unemployment benefits, housing sales in the secondary market and manufacturing activity in Philadelphia.

The USD index, which tracks the US currency against a basket of six major rivals, fell 0.1% to 96.36 on Thursday morning.

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