Copper May Drop, Survey Says
Source: Commodity Online (10/7/10)
"Efforts to stimulate the economy could take time to produce a demand rebound."
Seven of 14 analysts, investors and traders surveyed by Bloomberg, or 50 percent, said the metal will fall next week. Six predicted higher prices and one expected little change. Copper for delivery in three months was 0.1 percent lower for this week at $8,090 a metric ton at 4:35 p.m. yesterday on the London Metal Exchange.
U.S. two-year Treasury yields fell to a record low yesterday amid speculation the Fed will resume asset purchases under its quantitative-easing plan, aiming to boost growth. A report today may show the jobless rate rose in September for a second month, indicating a rebound will take time to develop, and providing one reason why the Fed may ease monetary policy. Fed watchers expect policy makers to take further action at their next meeting Nov. 2-3.