Copper Drops on Economic Concerns Before Central Bankers Meet
Copper fell for the first time in four sessions as investors awaited signals from central banks this week on bolstering the faltering global economy.
European Central Bank President Mario Draghi is attempting to build consensus for a plan to ease euro-area borrowing costs amid the region’s debt crisis. Federal Reserve policy makers meet before a U.S. employment report that may show the pace of hiring in July failed to reduce the jobless rate.
“A lot of people are taking a wait-and-see attitude ahead of the meetings and the payrolls report,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Copper will rally if we get an agreement out of Europe, but the market needs to see it. The table is set, but they’re waiting for the meal to be served.”
Copper futures for September delivery declined 0.3 percent to settle at $3.416 a pound at 1:14 p.m. on the Comex in New York. The metal rose 2.2 percent in the previous three sessions in the longest rally since mid-June.
A Labor Department report on Aug. 3 is expected to show U.S. payrolls increased by 100,000 workers, according to the median forecast of economists surveyed by Bloomberg News. Unemployment is projected to hold at 8.2 percent.
On the London Metal Exchange, copper for delivery in three months fell 0.3 percent to $7,545 a metric ton ($3.42 a pound).
Aluminum, nickel, tin, lead and zinc advanced in London.
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