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Copper, Gold, and Silver Are Stable Early on October 12

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Copper is stable in the early hours

After falling on October 11, copper prices are stable in the early hours on October 12. At 6:55 AM EST on October 12, the COMEX copper futures contract for December delivery was trading at $2.19 per pound—a gain of 0.02%.

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Fall in inventory levels and stronger US dollar

The copper inventory levels in the London Metal Exchange fell to three-week low levels on Wednesday and supported copper prices. The stronger dollar is weighing on copper prices. The firmer dollar weighs on dollar-denominated commodities such as copper, gold, and silver. The market is looking forward to the Fed’s September meeting minutes. The minutes could drive the US dollar today. The demand signals for copper from China are strong due to better-than-expected economic data. The improvement in China’s property market also made the sentiment better.

On October 11, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) fell 3.2%, 5.4%, 2.6%, and 3.6%, respectively. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) fell 2.9% and 1.6%.

Gold and silver are stable 

Gold and silver are stable in the early hours on October 12. At 7:05 AM EST on October 12, the COMEX gold futures contract for December delivery was trading at $1,255.50 per ounce—a fall of ~0.02%. The COMEX silver contract for December delivery fell ~0.04% to $17.5 per ounce. The market is waiting for the Fed’s September meeting minutes. The minutes will be released today. On October 11, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell 0.39%, 0.6%, 1.3%, and 2.3%, respectively. The SPDR Gold Trust ETF (GLD) fell 0.5%.

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