COPPER
With Reuters this morning indicating copper is poised to post the largest weekly decline in 11 months and the copper market likely holding a net spec and fund short around 30,000 contracts, the trade has factored in a very significant bearish fundamental case. At least in the current condition, favorable US jobs data today, will instead pressure copper following further gains in US treasury yields and further gains in the dollar. On the other hand, copper could mount a fleeting technical bounce today if jobs today fails to spark volatility in financial markets. Fortunately for the bull camp, the Chinese Autumn Festival is coming to an end and there is the potential for Chinese bargain hunting buying next week especially with prices at the lowest levels since the middle of last November.
GOLD / SILVER
Global equity and commodity markets tracked higher overnight. Critical economic news release night included a smaller than expected contraction in Japanese household spending in August softer than expected Japanese labor cash earnings list a slightly improved Japanese leading economic index, unchanged Swiss unemployment for September, affected contraction in GBP Halifax house prices, a stronger than expected jump in German factory orders contractions in both French imports and exports for August, and a larger than expected contraction in Italian retail sales. The North American session will start out with the highlight for global markets, the September US employment situation report.
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