Goldman Fraud Charge Hits Copper Prices


Copper falls as risk-averse investors jump ship.

As news over impending fraud charges against leading commodities player Goldman Sachs (NYSE:GS) hit the market last Friday, copper witnessed a considerable downside. Risk-averse investors jumped from their positions, sending copper plummeting to a three-month low. Copper for three months' delivery on the LME touched a session low of $7,610.25.

On Tuesday, copper was in positive territory, back-peddling from the losses suffered on Friday and Monday. Three-month copper on the LME CMCU3 rose to $7,745 per ton. Copper for May delivery on the COMEX was up 4.55 cents, or 1.3%, at $3.54 per lb by 10:10 a.m. EST.

Copper's rebound was fueled by realization that the SEC regulators had mixed opinions over the Goldman accusations. The copper market was met with other positive fundamentals including short covering and a declining greenback.

Nonetheless, negative data is still weighing down copper. LME metal stocks fell by 350 tons to 507,525 tons on Tuesday. COMEX copper stocks were unchanged at 101,128 short tons as of Monday.

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