Comex copper prices extended their momentum into early morning trading on Tuesday October 24, following a strong round of manufacturing data from the USA and abroad.
Copper for December settlement on the Comex division of the New York Mercantile Exchange moved up 0.55 cents or 0.2% to $3.1935 per lb.
The US flash manufacturing PMI in October stood at 54.5, just above the forecast of 53.3. Flash services PMI also exceeded expectations at 55.9.
In other markets, China’s October flash manufacturing PMI was 60.5, against a predicted 60.1. The French reading for the same month was also positive at 56.7, compared with a forecast 56.2. The Eurozone PMI was 58.6, against the expected 57.9.
This recent data demonstrates a healthy manufacturing environment heading into the fourth quarter that should keep copper prices supported.
“Robust global risk sentiment and a positive macro-backdrop has encouraged dip-buying activity,” Metal Bulletin analyst Andy Farida said. “Therefore, we are cautiously bullish towards the red metal in the very short-term but will not be surprised if pullbacks remain limited.”
In precious metals, Comex gold dipped $3.50 or 0.3% to $1,277.40 per oz.
LME Week kicks off in London next week while Cesco Asia Copper Week takes place in Shanghai at the end of November.
Currency moves and data releases
- The dollar index was up just 0.05% to 93.88 – it had risen as high as 94.02 on Monday, its highest since October 6.
- In other commodities, the Texas light sweet crude oil spot price rose 0.31% to $52.06 per barrel.
- In additional data, the Richmond manufacturing index disappointed at 12, below the forecast of 17. In China, the CB leading index month-over-month in September increased 1%.