Copper for December settlement on the Comex division of the New York Mercantile Exchange rose 2.35 cents or 0.8% to $3.1190 per lb. Earlier on today, the contract touched $3.1205, its highest since September 8.
Since investors returned from an extended holiday weekend on Tuesday, red metal prices have experienced sustained buying. Another contributing factor was Chinese market participants’ growing optimism before the Communist party convenes for their five-year planning meeting in Beijing.
"The stock rise and wider spreads of late, also suggest plentiful availability so there should be little need for buyers to chase prices higher, although they seem to be doing so anyway," Metal Bulletin’s senior analyst William Adams said.
"China has returned from its week-long holiday and prices have been buoyant, we wait to see whether Shanghai Futures Exchange copper stocks continue to fall at a fast pace," Adams added.
In the precious metals space, Comex gold for December delivery rose $6.90 or 0.5% to $1,295.80 per oz.
Currency moves and data releases
- The dollar index was up 0.17% to 93.11.
- In other commodities, the Texas light sweet crude oil spot price was down 1.85% to $50.35 per barrel.
- In data today, weekly unemployment claims were at 243,000, 8,000 below the forecast of 251,000. PPI and Core PPI in September both came in at 0.4%.
- European Central Bank president Mario Draghi and US Federal Open Market Committee members Lael Brainard and Jerome Powell will be speaking later.