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Copper Futures Slip amid US, North Korea Tensions

August 10, 2017 at 16:00 by Andrew Moran

Copper prices are in the red on Thursday, but the industrial metal is still trading at its highest level in more than two years. Despite the red metal having a great 2017, some experts think that copper futures could trade sideways in the short-term because of renewed US-North Korea tensions.

September copper futures dipped $0.016, or 0.05%, to $2.91 per pound at 15:31 GMT on Thursday. Copper futures have pared their losses from the start of the trading session, and are continuing to trade at their best levels since mid-December 2014.

Year-to-date, copper has advanced more than 15%. Over the last 12 months, copper is up 32%. Copper prices shot up 7% in July.

Overall, the metals are having their best start since 2009, which is prompting miners to reignite their drilling efforts. According to Bloomberg News, Latin American mining firms drilled more than 50 holes exploring for copper in the second quarter of this year, the highest it has been since the fourth quarter of 2015. Overall, mining businesses are operating at 40% capacity, and many are competing with four large copper producers.

A new report from Angel Commodities does expect copper futures to trade sideways in the short-term because of geopolitical tensions occurring between North Korea and the US. With US President Donald Trump warning of “fire and fury” and North Korean leader Kim Jong-un undergoing various missile tests, investors are beginning to fear the worst possible outcome.

Experts were surprised that traders had waited this long to make moves on the hostilities between both countries.

Other metals are surging on Thursday. December gold futures soared $11.70, or 0.91%, to $1,291.00 per ounce. September silver futures rose $0.25, or 1.49%, to $17.11 an ounce. October platinum futures increased $11.10, or 1.14%, to $987.20 per ounce. October palladium futures jumped $7.45, or 0.84%, to $899.30 an ounce.

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