Why Copper ETFs Are Pulling Back
Wednesday, May 5th, 2010Tom Lydon submits:
What just happened? Copper, a widely held bellwether for economic activity, has suddenly pulled back. Exchange traded funds that track the metal have lost their gains for the year. What’s going on here?
Copper prices reached a closing high of $3.6505 on April 5, but since then they’ve plummeted 12.5%, writes Josh Lipton for Minyanville. With the dropping prices, miners are taking a hit, too. Analysts and metal observers attribute the plummeting prices of copper to increasing concerns over European solvency and China’s tightening measures, which also targets the metals-intensive real estate sector. [Global X Launches Copper and Silver Mining ETF.]
