Copper prices rose on Friday as the dollar edged down against most major rivals.

Earlier US data showed producer prices rose 1.8% y/y in September, slowing down from 1.9% in August.

On a monthly basis, producer prices were unchanged in September, after a 0.2% rise in August.

Copper marked a 0.5% loss last week as the markets waited for signals that recent Chinese government stimuli would support demand on minerals. 

Copper futures at the London Metals Exchange rose 10.8% last month, compared to a larger 11.7% rise at the Chicago Exchange to $4.5045 a pound in the same period.

Such a gap in prices, if continued to grow, would push more copper shipments towards the US in upcoming months.

Recently, the Shanghai Futures exchange resumed operations, including on minerals trading, with trading gauging the impact of stimulus measures on commodity demand. 

Separately, the dollar index inched down 0.1% as of 14:49 GMT to 102.9, with a session-high at 102.9, and a low at 102.7.

Copper December futures rose 0.9% in American trade today to $4.46 a pound. 

Bitcoin rose on Friday for the first time in five sessions away from recent three-week lows on short-covering.

However, the world’s most valuable cryptocurrency is still heading for the second weekly loss in a row amid mounting pressures, including the higher US 10-year treasury yields. 

The Federal Reserve is now increasingly likely to hold interest rates unchanged in November, with traders awaiting US producer prices data later today to gather more clues.

The Price

Bitcoin rose 1.6% at Bitstamp to $61,225, with a session-low at $60,031.

Bitcoin lost 0.4% on Thursday in what was the fourth daily decline in a row, plumbing three-week lows at $58,867.

Crypto Market Value 

The market value of cryptocurrencies rose by $50 billion on Friday to a total of $2.240 trillion as both bitcoin and ethereum rebounded.

Weekly Trades

Bitcoin is down 3% so far this week, on track for the second weekly losses in a row.

US Yields 

US 10-year treasury yields rose 0.9% on Friday, resuming the gains after a short hiatus, and about to hit three-month highs at 4.12%. 

It comes after investors reduced the odds of aggressive Federal Reserve interest rate cuts later this year.

US Rates

Investors reduced the odds of aggressive interest rate cuts by the Federal Reserve this year, following strong US labor data.

The Federal Reserve’s September meeting minutes showed Fed Chair Jerome Powell faced resistance from some members on cutting rates by 50 basis points, with some preferring a smaller 0.25% cut.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November stood at 85%, while the odds of no changes stood at 15%.

 Now investors await US producer prices data later today for September, expected up 1.6% y/y in September, slowing down from 1.7% in August. 

The US dollar gained ground in European trade on Friday against a basket of major rivals, maintaining gains for the fourth straight session and approaching two-month highs, while also heading for the second weekly profit in a row.

The gains come as US 10-year treasury yields rallied as well following bullish remarks from Fed officials and strong US consumer prices data.

Now investors await important US producer prices data later today to gather more clues on the state of inflation.

The Index

The dollar index rose 0.1% today to 102.96, with a session-low at 102.77.

The index rose mildly on Thursday and scaled a two-month high at 103.18.

Weekly Trading

The dollar index is up 0.5% so far this week, on track for the second weekly profit in a row.

US Yields 

US 10-year treasury yields rose 0.9% on Friday, resuming the gains after a short hiatus, and about to hit three-month highs at 4.12%. 

It comes after investors reduced the odds of aggressive Federal Reserve interest rate cuts later this year.

US Rates

Investors reduced the odds of aggressive interest rate cuts by the Federal Reserve this year, following strong US labor data.

The Federal Reserve’s September meeting minutes showed Fed Chair Jerome Powell faced resistance from some members on cutting rates by 50 basis points, with some preferring a smaller 0.25% cut.

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November stood at 85%, while the odds of no changes stood at 15%.

 Now investors await US producer prices data later today for September, expected up 1.6% y/y in September, slowing down from 1.7% in August. 

Gold prices rose in European trade on Friday and rebounded off three-week lows as the dollar stalled against most major rivals. 

Despite the current gains, gold is still heading for the second weekly loss in a row as the odds of an aggressive interest rate cut by the Federal Reserve in November faded. 

Prices

Gold prices rose 0.65% today to $2647 an ounce, with a session-low at $2628.

On Thursday, gold prices rose 0.85%, marking the first profit in seven sessions and moving away from three-week lows at $2602.

Weekly Trades

Gold prices are down 0.25% so far this week and could end up with the second weekly decline in a row.

The US Dollar

The dollar index dipped 0.1% on Friday for the first session in four away from two-month highs at 103.18 against a basket of major rivals. 

The decline comes after weak US labor data, which showed unemployment claims rose for the second straight week.

US Rates

Investors reduced the odds of aggressive rate cuts by the Federal Reserve this year after a spate of strong US labor data, and after the Fed’s latest meeting minutes showed division among members on the pace of rate cuts.

US consumer prices released this week showed inflation remains above expectations. 

According to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in November stood at 85%, while the odds of no changes stood at 15%.

Now investors await US producer prices data later today for September, which will likely impact the USD/JPY standing. 

SPDR

Gold holdings at the SPDR Gold Trust remained unchanged yesterday for the fourth day at 876.26 tonnes.