LONDON- Copper prices wilted as risk-off sentiment swept financial markets and investors took the opportunity to lock in profits after two days of rallying prices.
On a zig-zag day, copper rebounded as some investors sought protection against rising inflation, but lost steam again in the evening.
Three-month copper on the London Metal Exchange had shed 0.5 percent to $9,937 a ton, retreating below the $10,000 a ton mark.
USComex March copper dropped 1.4 percent to $4.52 a lb.
“We’re running into some profit taking following that strong run-up and it’s also because we’ve got risk-off sentiment in the stock market,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
Risk aversion dominated financial markets as stocks slumped in Europe, Wall Street slipped, oil prices fell and bond prices surged with traders scurrying for the relative safety of government debt.
