Monday was predicted to be a quiet day for the stocks of base metals ahead of the highly anticipated US elections; however, it was anything but quiet. London Metal Exchange (LME) trading on Monday 7th saw all base metals moved into positive territory, with many of them reaching their highest levels for months.
The three-month copper price peaked at $5,095 per tonne, its highest since March, while nickel broke through resistance at $11,000 to reach a three-month high and tin hit $22,000 for the first time since August 2014.
Many investors are just playing the waiting game for the election now. For the time being, the dollar index dropped to its lowest position in 3-weeks last Thursday, reaching 97.18.
In data today, the EU retail PMI was on target at 48.6 while Sentix investor confidence beat expectations at 13.1. Later, the EU will release retail sales numbers.
In the metals the three-month copper price at $5,076 per tonne was still $85 higher and building on last week’s gain of 3.1%.
Business has been robust – more than 13,000 lots have changed hands on Select so far.
“Large short positions in copper mean prices could overshoot to the upside if sentiment around China continues to improve. However, we think these types of moves would be going against the fundamentals… copper would look expensive if the current rally takes prices much above $5,000,” Barclays Capital noted.