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The market expected the fall in copper prices

6 August 2013
The market expected the fall in copper prices

According to the statistics of the Commission on trade

commodity futures, hedge funds and managers of assets during the last

weeks doubled their short positions in futures and options on


The total volume of short positions in contracts for the red metal

increased by 13.95 thousand, reaching 26.92 thousand contracts. This

the situation is on the market for the first time in the last five weeks — this is

a reflection of the fundamental factors of the world economy, in particular, low

demand for copper and the slowing of the Chinese economy, which, in today’s

day, stands the largest consumer of this metal in the world. Important

the role in question quotes online is also uncertainty in the subsequent

U.S. policy on control over the commercial banking institutions

Federal reserve system (FRS).

Earlier it was reported that the recent statements by the representatives

The fed is no mention about the folding program to repurchase assets, nor on the conservation

their current amount; and therefore, market actors do not exist any

tips and they need to wait for the autumn meeting of the regulator.

Foreign media also noted: during the reporting period, rates

on the growth of silver was also increased, however, in parallel with this has been reduced

long positions on gold. The net long position in options and futures

silver increased by 354 contract (reaching 6,675 thousand transactions), then

as in gold, the figure decreased by 4.55 thousand contracts to the level 65,517

thousand contracts.

In the cash market of precious metals in London the price of gold (spot

price) compared to its morning fixing (AM Fixing) on 5th August increased

2% and crossed the mark of $ 1,310 per ounce — the highest

figure since the beginning of the current month. At the same time, 2 August, observed

a two-week low in the value of gold — 1285,75 dollars per ounce.

Overall, Monday in the market of metals was observed

stable situation, contracts for copper and silver were traded with no significant

changes to levels of closing of the exchanges on Friday evening. As for the futures

gold, their price is not subjected to significant fluctuations.

5 August 2013
8 August 2013