Copper Drops to Lowest Since July 2010 on China Concerns
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Copper rallied as some investors deemed a drop to a 44-month low to be excessive amid signs of a resilient economic recovery in the U.S., the world’s second-biggest consumer.
The metal has lost 12 percent this year on concern that slackening expansions in the U.S. and China will curb demand. While growth cooled amid “adverse weather” this winter, there is “sufficient underlying strength” in the American economy to support an improving job market, the Federal Reserve said today. Copper’s 14-day relative strength index was below 30 for eight straight sessions through yesterday, a signal to some analysts that the commodity is poised for a rebound.