Copper prices rises on Thursday as a lower dollar rendered metals priced in greenbacks more affordable to holders of other currencies.
On the Comex market, Copper for December delivery gained by 2.4%, reaching $3.79 per pound ($8,338 per metric ton).
The US consumer price index upped less than predicted last month, which caused the dollar to plunge on Thursday. The official inflation rate for the country dropped to 7.7% from 8.2% in September and was lower than the economists’ projected 7.9% .
The U.S. economy has remained robust, particularly as measured by jobs. Despite the Fed’s efforts to make borrowing money more expensive. In October, the US added 261,000 jobs, far more than the predicted 200,000.
According to Marex analyst Zenon Ho. “In the absence of any change in the micro and macro, (metals) should see a sustained chop sideways.” He also said that the market was still uneasy due to ongoing conflicts across the world and the US midterm elections.
Inflation Slowing Down
Inflation appears to be slowing down. Over the past month, gas costs have decreased by around $0.10. Even though there are frequently delays before they manifest in official data.
Data indicate that both housing prices and rentals are falling. Used automobile prices have also decreased since reaching notable highs earlier this year.
However, the inflation rate is still far higher than the Fed’s 2% target, indicating that the central bank would likely continue to take aggressive action.
Some economists are still confident that the Fed can raise rates further without sending the United States into recession.
In the meantime, the National Business Daily stated that the Chinese province of Henan had granted 26.2 billion yuan ($3.65 billion) to support funding for problematic real estate projects and to guarantee prompt deliveries of homes that had already been presold.
However, the world’s top consumer of metals continues to show dismal economic indicators and an increase in coronavirus cases.