Base Metals Preview: Copper Down On Firm Dollar, Demand Woes

13 Jun 2022 , 08:49 AM

Broad gains in the US dollar combined with rising China covid worries and ensuing lockdowns are keeping the red metal under pressure. Besides, reacting negatively to a highly anticipated report on consumer price inflation, stocks moved sharply lower during trading on Friday. The Dow slumped 880.00 points or 2.7 percent to 31,392.79, the Nasdaq dove 414.20 points or 3.5 percent to 11,340.02 and the S&P 500 tumbled 116.96 points or 2.9 percent to 3,900.86. Consumer prices in the U.S. shot up by more than expected 1.0 percent in May after rising by 0.3 percent in April. With the bigger than expected monthly increase, the annual rate of consumer price growth accelerated to 8.6 percent in May from 8.3 percent in April, showing the biggest surge since December 1981. Chinese officials warned on Sunday of a ferocious COVID spread in the capital and announced plans to conduct mass testing in Beijing until Wednesday, further weighing down the metal. COMEX Copper futures are down 0.55% at $4.25 per pound. Powered by Commodity Insights