Comex copper prices were little changed to start the new week on Monday October 9, although the friendly economic backdrop is expected to keep prices supported.
Copper for December settlement on the Comex division of the New York Mercantile Exchange inched down 0.25 cents or 0.1% to $3.0265 per lb.
The red metal was rangebound last week after encouraging data was offset by a surging dollar on Friday following the disappointing US jobs report. The weak employment report gave pause to investors who believe the Federal Reserve will lift rates in December.
“In light of the currently friendly macro environment for base metals, we expect further upward pressure in copper prices in the coming days,” Metal Bulletin analyst Boris Mikanikrezai said.
Markets are also expected to see a boost with Chinese markets reopening after the Golden Week Holiday. However, buyers will likely await the decisions of the Communist Party Congress meeting next week in Beijing on infrastructure spending, stimulus plans and so on before making any large purchases.
In the precious metals space, Comex gold for December delivery gained $8.10 or 0.6% to $1,283.0 per oz.
Currency moves and data releases
- The dollar index was down 0.11% to 93.71.
- In other commodities, the Texas light sweet crude oil spot price was down 0.08% to $49.25 per barrel.
- In data today, China released its Caixin Composite Output Index, which covers manufacturing and services companies. The index fell to 51.4 in September from 52.4 in August, marking a three-month low. Meanwhile, China’s Caixin General Services Business Activity Index declined to 50.6 last month from 52.7 in August, the worst reading since December 2015.