Copper steadies after hefty losses

Copper stabilized mostly on Monday after extreme losses last week due to dollar's strength and concerns about global growth. 

US Dollar 

Dollar's strength played a major role in driving down prices of metals as they became costlier to holders of other currencies. 

The dollar index jumped to a fresh 20-year high at 105, in turn pressuring dollar-denominated commodity and mineral prices.

Such gains are due to the Federal Reserve's moves to control runaway inflation in the US, in turn accelerating the pace of interest rate hikes.

China's Economy

Chinese government continues to restrict movements in several major cities to contain a Covid 19 infection, in turn hampering economic growth.

China is the world's largest metals consumer, thus we see prices of all metals suffering when China's GDP suffers.

Latest data showed China's industrial output fell 2.9% in April, while analysts expected a 0.5% increase. 

China's unemployment rose to 6.1% last month from 5.8%, while analysts expected 6%. 

Copper futures due in July fell 0.1% to $4.17 a pound as of 14:45 GMT.