LIVE FUTURES REPORT 23/10: Comex copper inches upward to begin week

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.