Copper for December delivery on the Comex division of the New York Mercantile Exchange dipped 3.30 cents or 1.1% to $3.0330 per lb. The contract is trading at the lowest point since late August.
After sustaining heavy losses in two of the past three sessions, the red metal is entering a corrective phase following a surge to a three-year high.
“Metal prices rose sharply yesterday, but in light of a stronger dollar, a much weaker yuan and little change in the underlying ‘topping out’ pattern in a number of complexes, the move higher looked to be nothing more than a dead-cat bounce,” INTL FCStone analyst Edward Meir said.
“Indeed, the selling has resumed today, although the declines we are seeing are not as dramatic as what we saw on Friday,” Meir added.
In the precious metals space, Comex gold for December settlement dipped $11.50 or 0.9% to $1,339.70 per oz.
Currency moves and data releases
- The dollar index was 0.06 higher at 91.93.
- In other commodities, the Texas light sweet crude oil spot price was up 14 cents to $48.21 per bbl.
- Meanwhile, in a light data day, the NFIB small business index for August stood at 105.3, above the forecast of 104.8.The Jolts job openings figure was also impressive with a 6.17 million reading, besting the economic consensus of 5.96 million.