Credit: Investing.com -
Investing.com - Copper prices fell to a one-week low on Monday, as a broadly stronger U.S. dollar dampened the appeal of the commoditiy.
On the Comex division of the New York Mercantile Exchange, copper for March delivery shed 1.9 cents, or 0.66%, to trade at $2.799 a pound during European morning hours, after hitting a low of $2.797, the weakest level since December 29.
Futures were likely to find support at $2.756 a pound, the low from December 29, and resistance at $2.841, the high from January 2.
The US dollar index, which measures the greenback against a basket of six major currencies, advanced 0.3% to hit a nine-year high of 91.75, boosted by the diverging policy outlook between the Federal Reserve and central banks in Europe and Japan.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
The red metal slumped approximately 18% in 2014 as concerns over the global economic outlook and the impact on future copper demand prospects dampened the appeal of the commodity.
Elsewhere on the Comex, gold futures for February delivery tacked on $6.30, or 0.53%, to trade at $1,192.50 a troy ounce, while silver futures for March delivery jumped 22.5 cents, or 1.43% to trade at $15.99 an ounce.
In the week ahead, investors will be turning their attention to Friday's U.S. nonfarm payrolls report for further indications on the strength of the recovery in the labor market. Wednesday's Federal Reserve meeting minutes will be also closely watched.
Gold lost nearly 2% in 2014 amid indications a strengthening U.S. economic recovery will force the Fed to start raising interest rates sooner and faster than previously thought.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Meanwhile, oil prices continued to tumble on Monday to hit the lowest level in more than five years, as investors piled on to their short positions in anticipation of lower prices amid lingering concerns over a growing supply glut.
London-traded Brent prices declined 91 cents, or 1.6%, to $55.52 a barrel, while Nymex oil dropped 84 cents, or 1.59%, to end at $51.85, a level not seen since May 2009.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
