Copper, Gold, and Silver Are Weaker Early on November 16

Copper continues to move away from its highs

After falling 0.56% on November 15 amid decreased momentum, copper prices carried the same weakness into the early hours on November 16. At 6:20 AM EST on November 16, the COMEX copper futures contract for December delivery fell ~1.2% to $2.48 per pound.

Stronger dollar and decreased momentum

Copper’s rally to a 17-month high is fading. The firmer dollar also weighed on copper prices. Copper gained close to 19% from its October lows and reached the highest levels since May 2015. Since the beginning of the week, copper fell ~1.1% amid profit-booking and caution by analysts that the current rally is overdone. Until last week, the prices took support from improved copper demand signals from China and hopes about an increase in US infrastructural spending. Since China is the largest copper consumer, China’s economic strength will influence copper’s demand trends globally.

On November 15, major copper producers Freeport-McMoRan (FCX) rose 0.57%, while Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) fell 5%, 3.1%, and 3.8%. The SPDR S&P Metals & Mining ETF (XME) rose 1%, while the PowerShares DB Base Metals (DBB) fell 0.07%.

Gold and silver are weaker in the early hours

Gold and silver are weaker in the early hours on November 16. At 6:30 AM EST on November 16, the COMEX gold futures contract for December delivery fell ~0.04% to $1,224.05 per ounce. The silver futures contract for December delivery was trading at $16.97 per ounce—a fall of ~0.44%. The firmer dollar is stable at 11-month high levels in the early hours. It’s weighing on gold and silver prices. On November 15, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) rose 6.4%, 4.0%, 7.2%, and 4.3%, respectively. The SPDR Gold Trust ETF (GLD) rose 0.84%.

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