Copper for December delivery on the Comex division of the New York Mercantile Exchange gained 1.35 cents or 0.5% to $2.9625 per lb. The contract sustained major losses last week on its way to a one-month low.
Prices have fluctuated wildly the past month with growing inventories signalling weak demand, but positive Chinese and US data is lending support.
“In spite of last week’s sell-off in LME copper, we leave our constructive bias on LME copper unchanged over the very short term,” Metal Bulletin analyst Boris Mikanikrezai said.
“Our bullish stance reflects our view that the major uptrend in prices, which started last year, is not in danger. In fact, we view the current sell-off as healthy because: weaker hands exit the market, marking the positioning healthier (ie, less stretched); and overbought conditions are alleviated,” Mikanikrezai added.
Meanwhile in precious metals, Comex gold for December settlement fell $9.40 or 0.7% to $1,315.80 per oz.
Currency moves and data releases
- The dollar index was up 0.01% to 91.84.
- In other commodities, the Texas light sweet crude oil spot price was down 0.26% to $50.31 per barrel.
- In data today, the US NAHB housing market index came in at 64, a slight disappointment from the 67 estimate.
- In addition, Bank of England governor Mark Carney is speaking.