Eldridge Financial Review: Copper prices fall

Because of the cut down prices of copper on Monday stamped as a sign of a slower global economy in which many are asking about what is the future demand for the industrial metal. It was being lowered down two percent as well as the palladium and silver. These three metals are used in a huge number of consumer products from automobiles to consumer electronics and construction materials. It was reported that in the past few days the driving of the economic worries which includes the slowdown in U.S job creation and an increase in China’s inflation rate.

The U.S Labor Department reported Friday that employers added just 120,000 jobs in March, about half the pace from December through February. That renewed concerns about the pace of U.S. economic growth. Consumer prices in China rose 3.6 percent from a year ago but remained below the government’s 4 percent target for the year. Investors speculated that the government may not cut the ratio of funds that banks must hold as reserves, which would free up money for lending, R.J. O’Brien senior commodities broker Phil Streible said. That could hurt demand for copper in the world’s second-largest economy, which is a huge importer of raw materials.

Copper for May delivery fell 7.55 cents to end at $3.72 per pound, June palladium decreased $1 to $643.80 per ounce and May silver ended down 20.6 cents at $31.524 per ounce. July platinum ended up $10.60 to $1,618.20 an ounce.

» Eldridge Financial Review: Copper prices fall