Copper gained on November 22
After starting this week on a positive note by gaining on Monday, November 21, the COMEX copper futures contracts for December delivery strengthened on November 22. At 2:20 AM EST on Tuesday, November 22, the COMEX copper futures contracts for December delivery were trading at $2.54 per pound, a gain of ~1.1%. The recovery of the US dollar capped the gains of the metal.
Strong market sentiment supports prices
The improvement in the market sentiment has been supporting the copper prices since the beginning of this week. The prices moved off from 17-month high levels last week amid speculations over the sustainability of the price rally and profit booking. However, the prices inched higher on Monday, November 21, and gave a positive start to this week amid improved sentiment. The improved demand outlook from China and the US improved the sentiment. Considering the fact that China is the largest consumer of copper, the domestic demand situation of copper in China will influence global demand and price trends.
The better-than-expected economic data for copper, especially the improved manufacturing PMI data, renewed the domestic demand hopes for copper in China. This has sparked buying from Chinese speculators. On the other hand, the expectations of increased US infrastructural spending under Trump also improved the demand outlook for copper and pushed prices higher.
At 2:30 PM EST on Tuesday, November 22, the major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) rose ~3.5%, ~4.1%, ~4.6%, and ~3.2%, respectively. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) rose ~4.1% and ~1.5%, respectively. The following article explains the performance of gold on Tuesday, November 22.