Comex copper price nudges higher, Fed meeting commences

The Comex copper price saw continued buying Tuesday, November 1 amid improving Chinese manufacturing figures, which has followed weeks of optimistic global data.

Copper for December settlement on the Comex division of the New York Mercantile Exchange edged up 0.55 cents or 0.3% to $2.2105 per pound.

Comex gold for December delivery jumped $15.50 or 1.2% to $1,288.60 per oz. Earlier, the contract touched $1,289.20, the highest point since October 3.

Earlier today, China’s National Bureau of Statistics showed the country’s official manufacturing PMI for October at 51.2 – better than the market forecast of 50.4 and September’s reading, also of 50.4.

The Caixin manufacturing PMI for September came in at 51.2 – above expectations of 50.2 and September’s reading of 50.1. This was also the fastest growth in the sector in two years. Additionally, the country’s official non-manufacturing PMI, which represents the services sector, was at 54.0 in October, up from September’s figure of 53.7.

“Overnight, Chinese manufacturing PMI and privately reported Caixin equivalent number beat expectations, helping to support economic sentiment as base metals pushed higher,” a trader said.

In central bank news, the Bank of Japan kept interest rates unchanged but cut its fiscal 2017 inflation forecasts to 1.5% from 1.7%. It also pushed back its expectations for hitting 2% inflation to around fiscal 2018, a year later than its previous target of fiscal 2017.

Here in the US, the Federal Open Market Committee (FOMC) begins its two-day November meeting. With only seven days before the presidential election, less than 1-in-10 investors see the policy-board lifting interest rates.

But after third-quarter GDP showed the world’s largest economy grew at 2.9%, roughly 80% of marker participants are expecting a December hike, according to the CME FedWatch tool.

“Gold prices are edging higher and it seems more likely that a base has now been established. The halt in the dollar’s rise may well be providing some lift too,” William Adams, an analyst at Metal Bulletin, said.

Later today, US Final manufacturing PMI, ISM manufacturing PMI, construction spending, IBD/TIPP economic optimism, ISM manufacturing prices and total vehicle sales are all slated for release.

Meanwhile in European markets, Germany’s DAX and France’s CAC-40 were both down 0.2%, while the dollar softened by 0.4% to 1.1018 against the euro.

In other commodities, light sweet crude (WTI) oil futures on the Nymex gained 10 cents or 0.2% to $46.96 per barrel, while Comex silver for December was recently trading at $18.255 up 45.9 cents.

(Editing by Tom Jennemann)

The post Comex copper price nudges higher, Fed meeting commences appeared first on The Bullion Desk.

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