Comex gold prices for December delivery rose $6.70 or 0.5% to $1,303.10 per oz on Friday October 13 after less hawkish-than-expected comments from the Federal Open Market Committee (FOMC) minutes midweek put pressure on the US dollar.
Comex copper prices were trading at the highest point since early September on Friday and continue to see sustained buying since Chinese investors have returned from the Golden Week holiday.
Copper for December settlement on the Comex division of the New York Mercantile Exchange gained 1.40 cents or 0.5% to $3.1340 per lb. The contract is trading at the highest point since September 8.
Chinese market participants’ growing optimism ahead of the upcoming 13th Five-Year Plan meeting at the 19th Party Congress in Beijing next week is also playing a major part in the rally.
“Copper has rallied strongly across the past week, buoyed by strong arbitrage-related demand as Chinese players returned from Golden Week in a positive mood,” Metal Bulletin analyst James Moore said.
“We maintain a bullish view for copper’s fundamentals because improving demand and supply disruptions are set to tighten the supply/demand balance,” Moore continued.
The complex was also supported by a weaker dollar.
Currency moves and data release
- The dollar index was most recently down 0.28% to 92.82.
- In other commodities, the Texas light sweet crude oil spot price was up 1.36% to $51.29 per barrel.
- In US data, retail sales in September grew 1.6% in September, slightly below the consensus of 1.7%. Core retail sales over the same period stood at 1.0%. CPI and Core CPI both disappointed at 0.5% and 0.1%, respectively.
- In addition, FOMC members Robert Kaplan and Charles Evans are speaking later today.
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Source: Bullion Desk News
