Commodity rebound short-lived, dollar hits fresh high

Copper and gold once again were on pace to end Tuesday’s October 11 session in negative territory amid another dollar surge, which continues to weigh on the entire commodities complex.

Copper for December settlement on the Comex division of the New York Mercantile Exchange fell 1.40 cents or 0.6% to $2.1835 per pound. Trade has ranged from $2.1700 to $2.1995.

Comex gold for December delivery slid $4.50 or 0.4% to $1,255.90 per oz. The contract has now declined 9 out of the last 12 sessions.

Despite Chinese investors returning to the fold, a general market malaise has overtaken the trading community and the direction is being guided by the heavy dollar fluctuations.

At last glance, the dollar index stood at 97.67, the highest point since March 9. The greenback appears to be benefitting after the second US presidential debate and the perception that a Hillary Clinton win will open the way for a December US rate rise, National Australia Bank said.

“The copper trade reacted yesterday as if the Chinese were stepping up for some supply following their extended holiday last week,” The Hightower Report noted. “However, the copper market also seemed to benefit from spillover support from strength in precious metals and energies prices and that outside market influence has shifted back in favor of the bear camp to start today.”

Looking ahead, investors will be focusing on tomorrow’s release of Chinese M2 money supply, new loans and its trade balance.

Today was a quiet day for data. Out of the eurozone, ZEW economic sentiment was better than expected at 12.3 as was German ZEW economic sentiment at 6.2.

US data undershot today – the NFIB small business index came in at 94.1 and the labour market conditions index at -2.2.

Turning to US markets, the Dow Jones industrial average and S&P were down 1.1% and 1.2% respectively, while the dollar strengthened 0.8% to $1.1058 against the euro.

In other commodities, light sweet crude (WTI) oil futures on the Nymex fell 70 cents or 1.5% to $50.65 per barrel, while the most active Comex silver contract was last trading at $17.490 per oz., down 16.9 cents.

(Editing by Tom Jennemann)

The post Commodity rebound short-lived, dollar hits fresh high appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2dV5cUZ
via IFTTT