Comex copper price capped by 14-yr high in dollar index

Comex copper prices hovered around their previous settlement level on Friday November 18, with dollar strength capping any potential rally.

Copper for December settlement on the Comex division of the New York Mercantile Exchange dipped 0.2 cents or 0.1% to $2.4890 per pound. Trade has ranged from $2.4505 to $2.4900 so far.

Comex gold for December delivery slipped $2.50 or 0.2% to $1,214.40 per oz. Earlier, the contract touched $1,201.30, its lowest since May.

The dollar index was recently at 101.15, up 0.2% – it is holding around its highest for 14 years amid expectations that the US Federal Reserve will raise interest rates next month.

Yesterday, Fed chair Janet Yellen said US interest rates could rise “relatively soon” due to an improving domestic labour market and stronger economic growth.

Around 90% of market participants anticipate the Fed lifting rates next month, according to the CME Group’s FedWatch tool, which would be the first increase in a year.

“Good US economic data – both housing starts and building permits rose more sharply than expected in October – gave a boost to metals prices yesterday afternoon,” Commerzbank said in a note. “However, this morning they are under pressure as a result of the firm US dollar and are shedding yesterday’s gains.”

US president-elect Donald Trump’s investment pledge and concerns of populist right-wing victories in forthcoming European elections are contributory factors to the rise in the dollar index to 13-year highs this week.

“We remain quietly bullish for the fundamentals because of a stronger China but at these price levels we are not bullish on prices,” Metal Bulletin analyst William Adams said. “It would bullish if the Trump administration follows through on infrastructure spending but it is likely to be many months before orders pick up.”

In a quiet day for data, the CB leading index is scheduled for release although Fed members including James Bullard, William Dudley and Esther George are due to deliver speeches.

In European markets, Germany’s DAX was up 0.1% while France’s CAC-40 was down 0.4%. In currencies, the dollar was virtually unchanged at 1.0627 against the euro.

In other commodities, light sweet crude (WTI) oil futures on the Nymex edged up 13 cents or 0.3% to $46.11 per barrel while Comex silver for December settlement slipped to $16.700 per oz., down 7.2 cents.

(Editing by Mark Shaw)

 

The post Comex copper price capped by 14-yr high in dollar index appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2g2kG6M
via IFTTT