DJ BASE METALS: Comex Copper 3.4673 Pauses After T

DJ BASE METALS: Comex Copper 3.4673 Pauses After Three-Day Rally
Aug 24, 2012 By Matt Day

--Comex September copper recently traded down 1.5 cents, or 0.4%, at $3.4775 a pound 
--Caution on Greek bailout terms, stronger dollar drag on copper 
--Futures gained 3% through Thursday on global monetary easing hopes

NEW YORK--Copper futures eased Friday, tracking a retreat in the euro as caution amid meetings between Germany and Greece spurred traders to cash out after the strong gains earlier this week.

The most actively traded copper contract, for September delivery, recently traded down 1.5 cents, or 0.4%, at $3.4775 a pound on the Comex division of the New York Mercantile Exchange.

Through Thursday, futures climbed 3% during a three-day rally as investors bet that weakening growth in the top consumer, China, as well as in the U.S. and Europe, would spur central banks to take steps to prop up economic growth.

"Industrial metals appear to have reached a floor," analysts with Deutsche Bank said in a note, as investors bet that the U.S. and China in particular will deploy stimulus measures in the coming months.

But investors turned cautious Friday after German Chancellor Angela Merkel said she wanted to keep Greece in the euro zone, but wouldn't commit yet to granting the country more time to implement the austerity measures that came as a condition of its internationally financed bailout. Worries about Europe's debt crisis have kept a lid on prices of copper and other growth-sensitive commodities this year, as a financial freeze in the euro zone would likely weaken global trade.

The euro slipped against the U.S. Dollar Friday, weighing on dollar-denominated copper futures by making them more expensive for buyers using other currencies.

Copper is used in a wide range of applications, including automobiles, appliances and heavy-duty power cables, making prices sensitive to shifts in the economic growth outlook.

Write to Matt Day at matt.day@dowjones.com
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08-24-12 0956ET
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