Weakness in copper
Copper prices were weak in today’s early trading hours, but the recent positive economic data from China along with a spike in oil prices are supporting copper. At 5:30 EST, Comex copper for May delivery was trading at $2.14 per pound, a decline of 0.95%.
Gold and silver inch up
Silver jumped as high as 3% early today and reached prices we haven’t seen in ten months. At 5:34, silver futures for May delivery were trading at $16.74 per ounce, a gain of 3.0%. This move was supported by buying from China and the softer dollar. This surge in silver prices also supported gold on Tuesday morning. At 5:37, gold futures for June delivery were trading at $1,243.70 per ounce, a gain of 0.70%.
Even though Asian shares are up, taking support from the spike in crude oil prices, the demand for safe haven assets didn’t decrease this morning because of the surge in silver prices.
Eyes on comments from Fed officials
Gold traders are scrutinizing comments from Fed officials to predict monetary policy. The Fed President of Boston, Eric Rosengren, said on Monday that the Fed is set to increase interest rates more rapidly. The Fed President of New York, William Dudley, said US economic conditions are “more favorable” and added that the Fed remains cautious.
On Tuesday, China took a step to gain more control over gold prices by launching a yuan-denominated benchmark for gold. Sentiment seems to support gold producers like Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Harmony Gold (HMY) as well as the SPDR Gold Trust (GLD) and the VanEck Vectors Gold Miners ETF (GDX) today.