Copper edged down during Asian trading hours on Wednesday as investors remained cautious following weeks of volatility in financial markets due to turmoil in the banking sector, although fears of a full-blown crisis have eased.
Three-month copper on the London Metal Exchange was down 0.4 percent at $8,945 a ton after two straight sessions of modest gains.
The most-traded May copper on the Shanghai Futures Exchange shed 0.2 percent to 69,280 yuan ($10,065.82) a ton.
“Clearly, investors have not completely lost their anxiety in the wake of the recent bank failures in the US and hints of a big regulatory overhaul are likely to weigh on the sector until details emerge,” ING analysts said in a note.
Copper, however, appeared to be supported near $9,000 a ton, with the US dollar still on the back foot following two consecutive days of losses. A weak dollar makes greenback-priced metals cheaper for buyers with other currencies.
LME nickel was down 1.3 percent at $23,765 a ton, retreating after hitting a three-week high in the previous session and advancing for four consecutive sessions on dwindling inventories and short-covering by speculators.
