Copper Futures End Near Steady Amid Dollar Strength, Gold Weakening

Strategic Insights -

Copper futures ended the day near steady as a stronger dollar and weakening gold prices offset support from talk of infrastructure building in the United States. The Comex division of the New York Mercantile Exchange saw March copper rise 0.2 cent to settle at $1.4590 a pound. Analysts pointed to the dollar's strength, driven by rumors of aggressive stimulus plans from the Obama administration, and a weakening euro as key factors in the day's price movement.

Key Takeaways:

  • Copper futures rose 0.2 cent to settle at $1.4590 a pound on the Comex division of the New York Mercantile Exchange.
  • The stronger dollar, driven by rumors of aggressive stimulus plans from the Obama administration, put pressure on copper prices.
  • Weakening gold prices also contributed to copper's decline, with Comex February gold falling $21.70 to settle at $857.80 an ounce.
  • Inventories of copper stored in London Metal Exchange warehouses rose 1,500 metric tons, leaving them at 342,050 tons.
  • The most recent Comex inventory data showed unchanged inventories at 34,514 short tons.
  • Analysts cited short-covering activity and fresh buying interest as contributing to the metals' recovery from intraday lows.
  • Sterling Smith, vice president at FuturesOne, noted that gold's weak start to the year was weighing on copper.

Statistics:

  • Copper futures rose 0.2 cent to settle at $1.4590 a pound.
  • Comex February gold fell $21.70 to settle at $857.80 an ounce.
  • Inventories of copper stored in London Metal Exchange warehouses rose 1,500 metric tons to 342,050 tons.
  • The most recent Comex inventory data showed unchanged inventories at 34,514 short tons.
  • Stocks in the U.S. stimulus package could reach up to $310 billion, according to The Wall Street Journal.

Sources:

  • Dow Jones Commodities News via Comtex
  • Standard Bank analyst Leon Westgate
  • MF Global analyst Edward Meir
  • Peak Trading Group senior broker Pat Donnelly
  • Sterling Smith, vice president at FuturesOne
  • The Wall Street Journal
  • Dow Jones & Company, Inc.