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Copper, Gold, and Silver Are Weaker Early on October 26

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Copper prices eased in the early hours

After rising on October 25, copper prices calmed down in the early hours on October 26. At 6:45 AM EST on October 26, the COMEX copper futures contract for December delivery fell ~0.12% to $2.14 per pound.

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Profit-booking keeps the lid on copper

Copper rose on October 25, but it wasn’t able to carry the momentum into the early hours on October 26 due to profit-booking. On the other hand, analysts expect China’s copper imports to pick up by the end of 2016. China’s stronger property market and the arbitrage opportunity created due to the weaker yuan support these expectations. China’s refined copper imports have been falling for the past three months. They fell as much as 31% in September—compared to the same period last year. The imports fell due to the unexpected rise in production by the Las Bambas mine in Peru.

On October 26, major copper producers such as Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) rose 3.6%, 3.1%, 2.1%, and 1.9%, respectively. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) rose 0.19% and 1.9%.

Gold and silver are weaker in the early hours

Gold and silver are slightly weaker in the early hours on October 26. Increased expectations of an interest rate hike are weighing on gold prices. At 7:00 AM EST on October 26, the COMEX gold futures contract for December delivery was trading at $1,271.65 per ounce—a fall of ~0.14%. The COMEX silver contract for December delivery fell ~0.49% to $17.69 per ounce. On October 25, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) rose 2.2%, 2%, 1.7%, and 3%, respectively. The SPDR Gold Trust ETF (GLD) rose 0.75%.

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