LIVE FUTURES REPORT 26/09: Downturn in Comex copper prices continues unabated; dollar rises

Comex copper prices extended the latest rout in US morning trading on Tuesday September 26 with prices hitting a six-week low amid further technical selling.

Copper for December settlement on the Comex division of the New York Mercantile Exchange dipped 2.40 cents or 0.8% to $2.9135 per lb. Earlier, the contract hit $2.9100, the lowest since August 16.

“We view the recent weakness in LME copper as a healthy technical consolidation allowing heavy spec positioning to normalise and overbought conditions to dissipate,” Metal Bulletin analyst Boris Mikanikrezai said. “A powerful wave of ‘buy on the dips’ should follow. “

The rising geopolitical feud between the USA and North Korea is also leading to a general exit from riskier assets to ones deemed safer.

However, that has not aided the chief safe-haven asset. Comex gold for December delivery fell $7.10 or 0.5% to $1,304.40 per oz.

Currency moves and data releases

  • The dollar index was up 0.55% to 93.11.
  • In other commodities, the Texas light sweet crude oil spot price was down 0.84% to $51.78 per barrel.
  • Geopolitical tensions in East Asia heightened after North Korea’s foreign minister said on Monday that US President Donald Trump’s recent remarks are a declaration of war, and that Pyongyang has the right to take countermeasures, including shooting down US planes.
  • The economic agenda is light today with US new home data showing prices rose 5.8% in July, above the forecast of the 5.7%.
  • In addition, US Federal Open Market Committee chairwoman Janet Yellen is due to speak at the National Assn for Business Economics annual meeting in Cleveland.

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