The price of copper broke a new record in more than two years this week, breaking the $ 7,000 per tonne mark on the London Metal Exchange (LME) to $ 7,034.00 on Wednesday.
The red metal was driven by the good economic health of China, which announced year-over-year growth of 4.9% in the third quarter, when most of the major economies remain weighed down by the Covid-19. The first country affected last year by the new coronavirus, China is also the first large economy to recover from it.
According to its latest report released this week, the International Copper Study Group (ICSG) also predicts a deficit situation for the copper market in 2020, “while forecasting a high surplus a year ago”, Noted Daniel Briesemann, analyst at Commerzbank. Saxobank and Marex Spectron analysts Ole S. Hansen and Alastair Monroe have finally pointed to production disruptions in Chile, which is going through an eventful week before a constitutional referendum on Sunday, and in Peru, in particular at the Las Bambas mine. These two South American countries are the two largest copper producers in the world.
On the LME, a tonne of copper for delivery in three months traded at $ 6,871 on Friday at 3:45 p.m. GMT (5:45 p.m. in Paris), against $ 6,740 the previous Friday at the close.
The sawtooth gold
The price of an ounce of gold has alternated rising and falling this week, the yellow metal struggling to find a strong direction. “Gold has been stuck for several weeks in a price range of $ 70 as the risk appetite of the markets is constantly changingCommented Lukman Otunuga, analyst at FXTM.
As for the American elections, the polls favor Democrat Joe Biden for the moment, “and therefore the possibility that the measures to support the economy will be more important than expected“, Commented analysts from Societe Generale. By boosting the US economy to counter the effects of the Covid-19 pandemic, these measures could support riskier assets, and push investors to abandon gold, a safe haven. “This should penalize gold, but worries about the consequences of the pandemic continue to worry investors, and the yellow metal clings to the threshold of 1,900 dollars an ounce“That is to say an increase of more than 25% compared to the beginning of the year, add analysts from Societe Generale.
On the London Bullion Market, an ounce of gold was worth $ 1,897.35 on Friday around 3:45 p.m. GMT (5:45 p.m. in Paris), against $ 1,899.29 the previous Friday at the close.
Coffee prices were roughed up this week, with New York-listed Arabica even hitting a three-month low on Thursday at 103.20 cents a pound. The “hardening“Measures put in place to counter the spread of Covid-19”in numerous countries“, as well as “rain in some Brazilian coffee growing areas pushing prices down againCommented Michaela Helbing-Kuhl, analyst at Commerzbank.
The health situation continues to deteriorate in many countries and leads to the establishment of curfews or even new confinements, especially in Europe. Robusta held up better. More bitter, it is more present in soluble coffees and therefore more often drunk at home, while arabica, preferred in espressos, suffers from the disaffection of bars and cafes.
On the London Liffe, the ton of ROBUSTA for delivery in January 2021 was worth $ 1,309 on Friday at 3:45 p.m. GMT (5:45 p.m. in Paris), against $ 1,297 the previous Friday at the end of the session. On New York’s ICE Futures US, ARABICA’s pound for delivery in December of this year was worth 105.20 cents, compared to 107.25 cents seven days earlier.