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Copper, Gold, and Silver Were Weaker amid Firmer Dollar

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Nov. 24 2016, Updated 1:05 p.m. ET

Copper prices weaker in early hours

After posting moderate gains on Tuesday, November 22, copper prices were weaker in the early hours on November 23. At 6:00 AM EST on Wednesday, November 23, COMEX copper futures contracts for December delivery were trading at $2.53 per pound, a drop of ~0.41%.

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Firmer dollar and market sentiment

Copper prices were slightly weaker in the early hours amid a stronger dollar, which is hovering around 14-year high levels. The sentiment in the copper market is stronger amid increased optimism over the demand outlook. The stronger demand outlook for copper from China and the US is supporting prices. The signs of increased domestic demand for copper in China along with hopes of increased US infrastructural spending under Trump are supporting the sentiment in the copper market.

On Tuesday, November 22, the major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) rose 4.2%, 5.2%, 5.1%, and 4.0%, respectively. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) rose 5.1% and 1.5%, respectively.

Gold and silver are slightly weaker in early hours on November 23

Gold and silver were slightly weaker in the early hours on Wednesday, November 23. At 6:05 AM on Wednesday, November 23, COMEX gold futures contracts for December delivery rose ~0.04% to $1,211.65 per ounce. Silver futures for December delivery were trading at $16.62 per ounce, a drop of ~0.05%. On the other hand, the high chance of an interest rate hike in December is weighing on precious metal prices. As of Tuesday, November 22, the chance of an interest rate hike in December was at 95.4%.

On Tuesday, November 22, precious metal producer Barrick Gold (ABX) fell 0.26%, whereas Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) rose 0.42%, 1.7%, and 1.2%, respectively. The SPDR Gold Trust ETF (GLD) fell 0.03%.

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