LIVE FUTURES REPORT 07/02: Comex copper price gains for third consecutive session but gold dips

Comex copper prices rallied for the third straight session on Thursday February 7 with the market growing more optimistic on the red metal's prospects through the first quarter.

The copper price for March settlement on the Comex division of the New York Mercantile Exchange gained 1.05 cents to $2.8470 per lb.

Market activity remains stunted with Chinese participants sidelined due to the Lunar New Year. Once they return on Monday February 11, global investors will be eyeing Chinese and US trade talks and any recent developments.

“Despite the absence of meaningful tightness in the refined copper market at this juncture – resulting from seasonally low demand – we expect the copper price to continue to move higher on positive macro sentiment,” Fastmarkets MB analyst Boris Mikanikrezai said.

“While investors were excessively bearish at the end of last year due to growing recession fears (triggering a significant sell-off across risk assets), copper has enjoyed a short-covering rally since the start of the year. This is attributable to the fact that investors have corrected their excessive positioning,” he added.

In precious metals, the Comex price of gold for April dipped $2.60 or 0.2% to $1,311.80 per oz. Trade has ranged from $1,306.40 to $1,315.80.

Currency moves and data releases 

  • The dollar index was up by 0.04% to 96.43. 
  • In other commodities, the Texas light sweet crude oil spot price was down by 0.46% at $53.22 per barrel. 
  • Meanwhile in US data, weekly unemployment claims came in at 234,000, above the estimate of 220,000. Later, consumer credit will be released.
What to read next
Saudi Arabia, through its spearheading of a mining and minerals production and consumption push in the Middle East, a region usually associated with oil and gas, is leading neighboring countries to increase their presence in the base metals markets
Indonesia is preparing to invest more in its aluminium supply chain as part of its wider critical metals strategy, Fastmarkets understands
Market sentiment remain mixed on whether the investigation will impact aluminium prices and production
Aluminium premiums in all key regions remained well-supported in the week to Tuesday June 18, amid ongoing reports of tight availability, while market participants in Europe and Asia are focusing on ongoing negotiations for Japanese third-quarter supplies
The Kingdom of Saudi Arabia’s (KSA) ambitious plan to diversify away from oil and into metals will increase local nickel consumption and fund international mining projects, given recent massive investments in nickel-intense industries
Fastmarkets proposes to amend the name of the MB-AL-0231 Aluminium P1020A all-in price, delivered Midwest US, US cents/lb to clarify that the price is based on the London Metal Exchange cash aluminium price.