LME OFFICIALS: Base metal prices pegged back ahead of frantic fiscal cliff talks

Base metal prices drifted lower in official trading on the London Metal Exchange on Friday December 28, the penultimate day of trading prior to the year-end deadline for US politicians to agree a new federal tax and spending programme.

Three-month copper settled at $7,874.5/75 per tonne on Friday, down from $7,897/900 per tonne a day earlier and $64.25 below its opening price, as markets waited for a breakthrough in negotiations to avoid spending cuts and $600 billion in automatic tax rises that are due to come into effect at the start of 2013.

Republicans and Democrats have so far failed to agree on a new budget to replace the expiring fiscal programme, but hopes for a resolution rose moderately on Thursday as President Obama cut short...

Published

Mark Burton

December 28, 2012

15:30 GMT

London