Copper fell on Friday as the dollar strengthened after some aspects of a disappointing US jobs report showed the Federal Reserve’s path to tightening monetary policy was still underway.
Three-month copper on the London Metal Exchange (LME) lost 1% to $ 9.401 a tonne, ending the week largely unchanged.
A stronger US currency makes dollar-denominated commodities more expensive for non-US companies, a ratio that mutual funds use to generate buy and sell signals.
Markets were nervous, moreover, due to the Omicron variant of the coronavirus. Countries introduced new restrictions to slow its spread, which could derail the global economic recovery.
“Copper and other base metals are holding up well despite bearish news such as the new variant, the slowdown in China and the possible tightening (of monetary policy) by the Federal Reserve,” said Gianclaudio Torlizzi, partner at consulting firm T- Commodity.
Visible copper stocks in operators’ warehouses declined, pointing to strong demand for the metal used in energy and construction.
At warehouses monitored by the Shanghai Futures Exchange, copper stocks fell 13.7% to 36,110 tonnes, according to weekly data.
Inventories in warehouses registered with the LME total 78,350 tonnes, a third of the levels registered at the end of August.
For their part, gold prices rose almost 1%, as the uncertainty caused by the Omicron variant of the coronavirus and the fall in Treasury yields boosted the attractiveness of the metal as a safe haven.
The precious metal spot gained 0.9% to $ 1,785.29 an ounce.
Similarly, US gold futures rose 1.2% to $ 1,783.90.
Reference-www.eleconomista.com.mx