Copper for December settlement on the Comex division of the New York Mercantile Exchange dipped 2.40 cents or 0.8% to $2.9135 per lb. Earlier, the contract hit $2.9100, the lowest since August 16.
“We view the recent weakness in LME copper as a healthy technical consolidation allowing heavy spec positioning to normalise and overbought conditions to dissipate,” Metal Bulletin analyst Boris Mikanikrezai said. “A powerful wave of ‘buy on the dips’ should follow. “
The rising geopolitical feud between the USA and North Korea is also leading to a general exit from riskier assets to ones deemed safer.
However, that has not aided the chief safe-haven asset. Comex gold for December delivery fell $7.10 or 0.5% to $1,304.40 per oz.
Currency moves and data releases
- The dollar index was up 0.55% to 93.11.
- In other commodities, the Texas light sweet crude oil spot price was down 0.84% to $51.78 per barrel.
- Geopolitical tensions in East Asia heightened after North Korea’s foreign minister said on Monday that US President Donald Trump’s recent remarks are a declaration of war, and that Pyongyang has the right to take countermeasures, including shooting down US planes.
- The economic agenda is light today with US new home data showing prices rose 5.8% in July, above the forecast of the 5.7%.
- In addition, US Federal Open Market Committee chairwoman Janet Yellen is due to speak at the National Assn for Business Economics annual meeting in Cleveland.