Copper Futures Rise Amid Weakening US Dollar and Oil Prices

Strategic Insights -

Copper futures surged higher on the Comex division of the New York Mercantile Exchange on Monday, boosted by a weakening US dollar and rising oil prices, amidst a general increase in investor risk appetite. December copper futures settled at $2.9675 a pound, up 1.5 cents from the previous day. The dollar's decline, attributed to the Group of 20 meeting in Scotland, where finance ministers made no indication to unwind stimulus programs, contributed to the upswing in copper prices.

Key Takeaways:

  • Copper futures settled higher on the Comex division of the New York Mercantile Exchange, up 1.5 cents to $2.9675 a pound.
  • The US dollar weakened, impacting copper futures, as investors' appetite for risk grew following the Group of 20 meeting in Scotland.
  • December copper futures reached a high of $3.05 earlier in the day, but pared gains after hitting a key resistance level around the $3 mark.
  • Inventories of copper stored in London Metal Exchange warehouses rose 3,900 metric tons to 389,475, while Comex inventory data showed a 873-short-ton increase to 65,003 short tons.
  • Bloomberg Business reported that copper prices are influenced by a mixed picture on supply and demand, with some analysts anticipating a break to the upside once a clear demand picture emerges.
  • Market analysts, including Ralph Preston of Heritage West Financial and Dan Cook of IG Markets, highlighted the uncertainty surrounding the timing and strength of a true economic recovery.

Statistics:

  • The US dollar index fell 0.58 point to 75.082 points in recent trading.
  • Copper futures reached a high of $3.05 earlier in the day, but settled at $2.9675 a pound.
  • Inventories of copper stored in London Metal Exchange warehouses rose 3,900 metric tons to 389,475.
  • Comex inventory data increased by 873 short tons to 65,003 short tons.

Sources:

  • Dow Jones Commodities News via Comtex
  • Comex division of the New York Mercantile Exchange
  • Bloomberg Business
  • Heritage West Financial
  • IG Markets
  • Dow Jones Newswires
  • Kelly Nolan and Matt Whittaker, Dow Jones Newswires