Copper price extends lower amid US uncertainty

Comex copper prices fell for a third consecutive session, with the metals market in consolidation mode due to uncertainty surrounding the US leadership.

The March-delivery Comex copper contract stood at $2.5275 per pound the morning of January 9, down 0.7% from the January 6 settlement of $2.546 per pound. Trade was ranging between $2.5195 and $2.5505 per pound. 

Gold for February delivery was trading at $1,180.50 per oz, up 0.6% in the same comparison. The contract touched $1,182.40 per oz earlier in the morning, about its highest since late in November. 

“We expect markets to move into consolidation mode ahead of the inauguration [of 45th President Donald Trump]. We expect underlying sentiment to remain mildly bullish for the base metals unless the new US administration starts off by creating shockwaves,” Metal Bulletin Research analyst William Adams said. 

Trump’s calls for protectionism and proposals for reduced trade with notable partners such as Mexico have created a stir in broader markets.

Still, the US economy is growing at a healthy clip, according to the December US jobs report. The data showed expanding wage growth, modest inflation and an increasing number of Americans joining the work force.

But metals markets are likely to see a notable thinning of liquidity shortly after this because many Asian participants will be absent, with the start of the Chinese New Year on January 28. 

In a light data day, readings on US labor market conditions and consumer credit are due later.

Turning to European markets, Germany’s DAX stock index and France’s benchmark CAC-40 stock index were down 0.6% and 0.7% respectively while the dollar was virtually unchanged at 1.0536 against the euro.

In other commodities, Nymex’ West Texas Intermediate light sweet crude oil futures dipped 2% to $52.93 per barrel and the Comex silver for March delivery was trading up 0.3% at $16.57 per oz.

(Editing by Renate Foster-Mas)

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