Rua Gold Inc. (TSXV: RUA, OTC: NZAUF, WKN: H8E)
An Emerging Gold Explorer with Two Highly Prospective Land Packages in New Zealand’s historical gold fields.
On Tuesday (October 8 local time), copper for December delivery fell nearly 3% to $4.44 per pound ($9,790 per ton) in early trading in Chicago.
At the end of September, copper prices easily surpassed the $10,000 per ton mark following a series of major monetary measures announced in Beijing to stimulate the country’s slowing economy, particularly the troubled real estate sector.
Beijing is expected to introduce another stimulus measure on Tuesday, this time from the National Development and Reform Commission, which will focus more on fiscal policy, infrastructure investment, and energy transition. However, the content of Tuesday’s briefing disappointed, leading traders to sell copper, resulting in losses that have now exceeded 7% following the previous gains.
Moreover, the market expects a situation similar to that of May, when copper prices reached a historic high of $5.20 per pound (nearly $11,500 per ton), but such expectations now seem less likely.
Benchmark Mineral Intelligence notes that during the recent rebound, the persistent positive spread on the London Metal Exchange (LME) has intensified cautious sentiment about copper prices outperforming the fundamentals, with some comparing it to the price rebound driven by funds in the second quarter.
In fact, last week’s trader position report from COMEX (the New York Mercantile Exchange) showed a significant return of funds to copper, with non-commercial net positions rising to their highest level since July, indicating a strong increase in bullish positions for three consecutive weeks. This has led to a resurgence of arbitrage opportunities between LME and COMEX, reminiscent of the situation in the second quarter. However, any extreme price increases are expected to be somewhat buffered by the high inventory levels on COMEX.
