Copper rose on November 7
After rising more than 3% in the week ending on November 4, copper extended its positive rally for the tenth day on November 7. At 12:40 PM EST on November 7, the COMEX copper futures contract for December delivery was trading at $2.31 per pound—a gain of ~1.9%.
Copper trades close to an eight-month high
On November 7, the COMEX copper futures reached the highest price levels since March 18, 2016. Copper started the day on a positive note and rose as the day progressed. Read Copper Is Stable, Gold and Silver Are Weak Early on November 7 to learn how copper traded in the early hours on November 7. The prices are stronger on November 7 despite the stronger dollar. Generally, the stronger dollar weighs on dollar-denominated commodities such as copper, gold, and silver.
Hopes about China’s economic outlook support copper
There’s more hope for China’s economy due to better-than-expected economic data—it supported copper prices. The recently released Caixin manufacturing data rose to highest level in more than four years. The manufacturing output is the highest in five and half years. According to the Caixin manufacturing PMI data released on November 1, the manufacturing PMI for October rose to 51.2.
Considering that China is the largest copper consumer, the manufacturing, property, industrial production data for China influence copper’s demand and price trends. At 2:05 PM EST, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) rose ~1.6%, ~5.1%, ~4.3%, and ~3.6%. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) rose ~1.4% and ~1.3%.
In the next part, we’ll discuss how gold and silver performed on November 7.