Commodities: Copper and oil futures slip as US dollar gains

The commodities complex saw selling pressure on the last day of the week despite a stronger than expected report on the state of US labour market, possibly as the American currency pushed higher in its wake.

US non-farm payrolls increased by a whopping 321,000 in November, according to the Bureau of Labor Statistics, far better than the 230,000 rise expected by analysts. On top of that, the previous two months' data were revised higher by a combined 44,000.

Nevertheless, in a research note e-mailed to clients, economists at Barclays said: "We think this month’s report will keep the Fed on a path to normalization. However, it will also try to balance a tighter labor market with still modest wage and inflation pressures, and therefore it will remain patient and data dependent.

"We maintain our view that the Fed will raise rates in June of next year, with risks tilted toward September given the sharp decline in commodity prices."

Three-month copper futures slipped 0.29% to $6,541 per metric tonne out on the LME.

In parallel, West Texas crude futures for delivery in January were down by 96 cents to $65.84 on the NYMEX.

Acting as a backdrop, figures out on the following Monday from the US Commodity Futures Trading Commission showed that speculators had boosted their net-long position in West Texas Intermediate crude by 14% over the seven days ended 2 December.

That was their highest in 20 months, according to Bloomberg data.

Analysts at Morgan Stanley predicted on 8 December that Brent futures would fall to an average of $57 per barrel in the second quarter of 2015.

Acting as a backdrop, there was also quite a bit of market commentary regarding the rapidly falling production of US shale producers.

Gold futures for delivery in February lost $15.5 to reach $1,990.40 per ounce on COMEX.