Copper started the week on a positive note
After breaking its winning streak and declining sharply in the week ended October 7, copper started to recover on Monday, October 10. At 1:05 PM EDT on Monday, the COMEX copper futures contract for December delivery gained ~1.5% and traded at ~$2.20 per pound.
Return of Chinese traders gave support to copper
In the week ended October 7, copper prices fell in four out of five trading days due to the stronger dollar and thin trading. The recently released, stronger-than-expected US economic data—along with increased speculation over a 2016 interest rate hike—strengthened the US dollar and weighed on copper prices. The stronger dollar weighs on prices of dollar-denominated commodities like copper, gold, and silver.
The decrease in traded volumes was due to the Golden Week holidays in China, which kept the traders out of the market. The return of Chinese traders into the market on Monday, October 10, brought optimism to the market and supported copper prices despite the stronger dollar.
Copper prices were stable in the early morning hours and gained momentum as the day progressed. Please read Copper, Gold, and Silver Are Stable Early on October 10 to see how copper traded in the early hours. The sentiment in the copper market has been positive due to the string of better-than-expected Chinese economic data. In addition, the improvement of China’s real estate market supported the positive sentiment.
The next article details the performance of gold and silver on Monday, October 10.