Commodity News
HeadLine : Copper falls as dollar rallies on Fed comments, U.S. data
Date : Oct 31 2014

Copper fell more than 1 percent on Thursday as the dollar rallied on strong U.S. growth data and the Federal Reserve's relatively hawkish tone on monetary policy.

A smaller trade deficit and a surge in defence spending buoyed U.S. economic growth in the third quarter to a better-than-expected 3.5 percent annual rate.

That data plus a show of confidence from the Fed in the U.S. economy's prospects sent the dollar to a 3-1/2-week high.

A strong dollar makes dollar-priced metals more costly for European and other non-U.S. investors.

Three-month copper on the London Metal Exchange closed down 1.2 percent at $6,736 a tonne.

Copper is down 8 percent this year on concerns about slowing demand from top user China as the country grapples with falling property prices, while rising supply is expected to swing the market to a large surplus next year.

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