Copper gained on 7th after the Custom General Administration of China released Trade Balance data that shows the economic growth sustained at the world second largest economy. Trade Balance rose to 31.1b from 23.5b. Refined copper import has also been increased by China.
On the other side Tapering Fear has made buyers a little bit nervous. If Fed starts tapering by the end of this year (That is not expected to happen due to weak economic data esp. payroll and inflation) the commodity may further lose the price as monetary support is required to continue the growth of US industries. Today payroll and unemployment data will further guide the buyers.
According to major investors Copper prices are expected to reach at $7000 by the Q3 of the year 2014.
Increasing number of cancelled warrants at LME to withdraw commodity from warehouses indicates that the demand for the metal is increasing at slow pace.
Tomorrow China Industrial Production data will further clarify the picture of the Chinese economy. Industrial production is expected at 10.1% that is 0.1 point down compare to previous result. Stable or positive production data will support the copper prices.
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