NEW YORK ( TheStreet) -- Copper contracts for July are down $0.06 on broader economic concerns following yesterday's remarks from Federal Reserve Chairman Ben Bernanke.
Copper is trading at $4.08 a pound on the New York Mercantile Exchange. The slight decline comes after an acknowledgement of the bleak economic outlook from Bernanke. The chairman stopped short of offering additional stimulus plans to boost growth, leaving investors uncertain over whether markets could reverse a five-day losing streak.
Copper prices on the London Metal Exchange saw a weak close. The three-month price fell 1.3% to $9,026 a metric ton. Today's drop was the first in four days.
Copper and several base metals also settled lower overnight on the Shanghai Futures Exchange. Most economists believe, however, that copper demand will remain strong as ongoing construction in the transportation and energy industries of developing countries will likely sustain overall global demand for the red metal.A weaker dollar tends to make dollar-priced commodities like copper more expensive for buyers using foreign currencies. The dollar index is up 0.38%. The greenback is falling 0.57% against the euro and 0.24 against the yen. If stocks continue their downward trend, copper could see high prices as investors look for a safe place to stash cash. Copper mining stocks are mixed in trading this morning. Mining company Southern Copper (SCCO)is down 0.4% at $31.22. Freeport-McMoRan Copper & Gold (FCX - Get Report)is down 0.2% at $49.64. -- Written by Chao Deng in New York.
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