Comex gold, copper recover from recent lows

The Comex copper price staged a modest recovery Tuesday Oct. 18 although upside is capped with investor focused on the multi-month high dollar and upcoming Chinese data.

Copper for December settlement on the Comex division of the New York Mercantile Exchange ticked up 0.40 cents or 0.2% to $2.1110 per pound. Yesterday, the contract touched $2.100, the weakest mark since September 13.

Comex gold for December delivery inched up $4.70 or 0.4% to $1,261.30 per ounce. Trade has ranged from $1,255.90 to $1,265.0.

On Monday, the US Empire State manufacturing index, the capacity utilization rate and industrial production all fell short of estimates. In response, the dollar rally paused and was last trading at 97.84 on the dollar index – down slightly from Monday’s close.

Now investors turn to Wednesday’s run of economic data from China, which has gained in importance after last week’s forecast-missing trade data.

China will publish its third-quarter GDP growth figure, which is forecast at 6.7%, and will be looking for confirmation that the Chinese economy has stabilised.

In a preview, M2 money supply year-over-year in September grew 11.5%, a touch below the 11.6% forecast. New loans in yuan-denominated terms in September totalled 1,220 billion, besting the economic consenus of 1,000 billion.

“New loans rose at a much stronger pace than expected in September, highlighting very fast domestic credit growth, in part thanks to proactive fiscal measures,” Metal Bulletin analyst Boris Mikanikrezai said.

“The market is interpreting this data as positive, as reflected by strong price increases in base metals, but we remain concerned about the sustainability of the country’s debt over the longer term,” he added. 

Later in US data, inflation data, housing figures and TIC long-term purchases are all scheduled for release.

Turning to European equities, Germany’s DAX and France’s CAC-40 were up 1.2% an 1.5% respectively, while the dollar strengthened by 0.1% to 1.0996 against the euro.

In other commodities, light sweet crude (WTI) oil futures on the Nymex gained 23 cents or 0.5% to $50.60 per barrel, while Comex silver for December settlement was recently trading at $17.680 per oz., up 20.6 cents.

(Editing by Tom Jennemann)

The post Comex gold, copper recover from recent lows appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2ehowcj
via IFTTT