Heavy liquidation across both base and precious metals sent London Metal Exchange three-month copper tumbling below key technical levels Thursday before prices retraced slightly.

LME three-month copper breached the 30-day moving average on its way down to a 10-day low of $7,300/ton mid-afternoon.

Selling pressure came from a combination of sources – a rebound in the dollar against the euro gave impetus to bearish moves, as did a sharp drop in aluminium prices.

But weakness signaled a buying opportunity for those funds with fresh fund allocations at the start of the month and bargain-hunting buying soon emerged, one analyst said. Buying off lows helped prices retrace to $7,700/ton at late kerb, up $200 on previous PM kerb.

Aluminium fell to a six-week low of $2,530/ton, responding to news U.S.-based aluminium producer Alcoa Inc. (AA) reaching a tentative labor contract agreement late Wednesday. Prices retraced to $2,610/ton at late kerb, up $20 on previous PM kerb levels.

Nickel fell to an intra-day low of $19,800/ton in line with copper's declines, though retraced to $20,550/ton by late kerb. Zinc finished the session $160 down on previous PM kerb prices at $3,500/ton.

3 months metal (prices in dollars a ton)
Bid – Ask, Change from Wednesday PM kerb

Copper 7700.00-7710.00, Dn 200.00
Lead 1038.00-1042.00, Dn 32.00
Zinc 3500.00-3505.00, Dn 160.00
Aluminium 2610.00-2615.00, Dn 40.00
Nickel 20550.00-20600.00, Dn 1,350.00
Tin 8185.00-8195.00, Dn 110.00