Copper sold off yesterday on weak industrial figures and a weak Eurozone recovery. There was continued liquidation seen in copper open interest, off 4744 contracts to 156,523 compared to 174,253 in the first week of August as traders stepped back from longs. The market is now also awaiting Chinese news about weak lending by banks.
Meanwhile gold caught some more bargain hunters and short covering while futures showed lower open interest. Recently, open interest in options on gold futures increased to 1,490,766 more than the loss on futures. Lower continued interest rates and continued geopolitical concerns are keeping prices steady. Technically we still need a close over $1,325 and a move to $1,350 to bring back many of the funds that keep abandoning gold chasing stock market performance.