Copper prices are weaker
After falling for three consecutive trading weeks, copper prices are weaker in the early hours on October 24. At 6:40 AM EST on October 24, the COMEX copper futures contract for December delivery was trading at $2.09 per pound—a fall of ~0.02%.
Strength of the dollar and oversupply concerns
The strength of US dollar and copper oversupply concerns are weighing on copper prices in the early morning hours on October 24. The increasing expectation of an interest rate hike by the end of 2016 is supporting the US dollar. The stronger US dollar weighs on dollar-denominated commodities such as copper and gold. According to the data released by the International Copper Study Group on October 20, refined metal production outpaced copper consumption by 105,000 metric tons in July. At the same time, the recently released Chinese economic data such as industrial production and GDP didn’t support copper prices.
On October 21, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), and BHP Billiton (BHP) fell 1.7%, 0.35%, and 0.16%, while Rio Tinto (RIO) rose 1.4%. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) fell 0.5% and 0.37%.
Gold and silver wait for US economic data
Gold and silver are looking forward to the US economic data such as flash PMIs, consumer confidence, and property data. At 6:50 AM EST on October 24, the COMEX gold futures contract for December delivery was trading at $1,265 per ounce—a fall of ~0.21%. The COMEX silver contract for December delivery rose ~0.71% to $17.62 per ounce. The stronger dollar amid high expectations about an interest rate hike is weighing on gold prices. On October 21, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell 0.7%, 1.8%, 0.33%, and 2.3%, respectively. The SPDR Gold Trust ETF (GLD) rose 0.07%.