LONDON- Prices of copper and other industrial metals fell on Friday over fears that a new and possibly vaccine-resistant coronavirus variant could derail global economic growth and sap demand.
Benchmark copper on the London Metal Exchange (LME) shed 3.6 percent to $9,465 per ton by 1710 GMT. The metal, used to gauge global economic health, logged its second weekly decline.
The dollar gained while world stocks and oil prices fell as European and Asian countries tightened travel curbs after news of the new variant.
“The market is in risk-off mode due to this newly detected variant of coronavirus,” said Amelia Fu, Head of Commodity Market Strategy at Bank of China International.
Little is known of the variant, detected in South Africa, Botswana and Hong Kong, but scientists say it may be able to evade immune responses and could be more transmissible.
A possible acceleration in monetary tightening by the US Federal Reserve also contributed to the sombre mood in the market and low liquidity due to the Thanksgiving holiday exaggerated price moves.
