Prices have bounced back since tumbling to the lowest point since the beginning of the year on May 3. Overall, the supply-and-demand fundamentals remain unchanged, but the sell-off prompted a round of fresh buying.
“Copper prices have undergone a correction; prices had run ahead of the fundamentals and the higher prices had led to a temporary increase in supply,” Metal Bulletin head of research William Adams said.
“It is now a case of letting the long liquidation run its course, but we think these lower prices will prompt some restocking,” he added.
Copper price rises
LME stocks fell a net 4,225 tonnes to 325,150 tonnes.
Lower copper output from world’s largest copper-producing country also lent support to prices. Chilean copper commission Cochilco announced that copper production in Chile during the first quarter of 2017 was down 14.6% year-on-year to 1.19 million tonnes, as a result of the strikes during the period.
“Copper is already testing the $5,599 resistance which is [the] 38.2% [Fibonacci retracement level] of the move from May $5,820 high to $5,462 low,” Marex Spectron said.
Currency moves and data releases
The dollar index was down 0.35% to 98.84.
The light sweet crude oil spot price was up 3.51% to $49.86 per barrel.
Data out today has showed better Japanese PPI at 2.1%, up from 1.4% previously. China’s industrial production climbed 6.5%, which was lower than the 7.6% seen previously; fixed asset investment climbed 8.9%, compared with 9.2%; retail sales growth dipped to 10.7% from 10.9%.
In the USA, the Empire State manufacturing index stood at -1, a big miss from the forecast of 7.2. Later there is NAHB housing market index, and TIC long-term purchases.
---------- Post added 15-may-2017 at 20:59 ----------
Gold prices inched higher on Monday May 15 as weaker-than-expected US data weighed on the dollar.
The spot gold price was recently quoted at $1,230.05-1,230.45 per oz, up $2.05 from the previous day’s close. Trade has ranged from $1,226.75-1,230.75 so far today.
• The dollar index decreased 0.01% on Monday morning to 99.19.
• “Gold prices inched higher on the back of tepid economic data in the US. While market pricing for a hike in interest rates is virtually 100%, the weaker-than-expected US CPI and retails sales numbers on Friday stocked a little bit of doubt in some investors’ minds”, ANZ said on Monday.
• “Some safe haven buying was also evident, with the fallout from [US] president Trump’s sacking of FBI head Comey still lingering,” ANZ added.
Silver, PGMs
• In the other precious metals, the spot silver price up $0.09 at $16.500-16.550 per oz. Platinum was up $8 at $923-928 per oz while palladium also increased $7 to $808-813 per oz.
• On the Shanghai Futures Exchange, gold for December delivery was recently at 278.7 yuan ($40.39) per gram, and the December silver was at 4,061 yuan per kg.
Currency moves and data releases
• In other commodities, the Brent crude oil spot price up 0.85 to $51.62 per barrel and the Texas light sweet crude oil spot price also gained 0.79 to $48.59 per barrel.
• In equities, the Shanghai Composite was up 0.36% to 3.094.53.
• In data, US Empire State Manufacturing Index and NAHB Housing Market Index will be released later today. In addition, UK Prime Minister Theresa May is speaking.
---------- Post added 15-may-2017 at 21:05 ----------
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Good price to buy.
---------- Post added 15-may-2017 at 21:09 ----------
Anyone speaks English?
