Comex copper inches upward to begin week

Comex copper prices recovered after a four-session drought in the morning on Monday October 23 with current fundamentals remaining positive for the complex in the USA.

Copper for December settlement on the Comex division of the New York Mercantile Exchange rose 1.00 cents or 0.3% to $3.1755 per lb.

“We remain bullish for copper’s fundamentals but these already-high prices are being met by selling. Upside progress may therefore slow while buying has to absorb the selling,” Metal Bulletin head of research William Adams said.

Prices jumped a week ago on optimism ahead of the Chinese Communist Party meeting. China’s economy is expanding at around 7% per annum and the government appears eager to maintain record growth in the housing market.

In precious metals, Comex gold dipped $5 or 0.4% to $1,275.50 per oz. Trade has been narrow between $1,273.60 and $1,281.50.

Currency moves and data releases

  • The dollar index was up 0.21% to 93.86. The primary support for the dollar came from higher US yields, with the two-year yield hitting a nine-year high while the progress in tax reforms boosted expectations of increased borrowing from the US government and a likely pick-up in inflation.
  • In other commodities, the Texas light sweet crude oil spot price was up 0.68% to $52.19 per barrel.
  • “Today’s Chinese data started on a promising note with property price rises almost slowing to a standstill, which was one the government’s objectives to both calm inflation down and stop investors using property as a speculative product,” said Malcolm Freeman of Kingdom Futures.
  • “That would come under the heading of ‘so far so good’ but raises the question of where investors will turn next and if they could re-enter the commodity markets,” he added.