London - Copper traded near its lowest in two weeks on mounting tensions in Syria before a report that may show the US economy grew more than previously estimated, adding to the case for the Federal Reserve to taper stimulus.
The metal for delivery in three months on the London Metal Exchange sank as much as 0.9 percent to at $7,226 a metric ton, the lowest since August 15, and traded at $7,268.25 at 4.09pm in Tokyo. The price is up 5.6 percent this month, set for the best month since September.
Investors are watching the Middle East after the US and the UK said on Wednesday they were ready to lead a military strike against Syria without United Nations approval. US gross domestic product probably grew 2.2 percent in the second quarter, up from the government’s earlier estimate of 1.7 percent, a Bloomberg survey of economists shows.
“People are watching developments in Syria as the market lacks upside momentum,” said Wu Jianguo, an analyst at Maike Futures Brokerage in Shanghai.
The Fed may pare its $85-billion-a-month in bond purchases at its September 17-18 meeting, according to 65 percent of economists surveyed by Bloomberg August 9-13. Fed Chairman Ben Bernanke has signaled the prospect of cuts to stimulus should the economy and job market continue to improve.
Copper for delivery in December on the Shanghai Futures Exchange was little changed at 52,370 yuan ($8,556) a ton. The contract for delivery in December fell 0.2 percent at $3.3175 a pound on the Comex in New York.
On the LME, aluminum, zinc, lead, nickel and tin dropped. - Bloomberg