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How Are Copper, Silver, and Gold Performing This Morning?

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Apr. 22 2016, Published 7:55 a.m. ET

Copper is set to record a strong weekly gain

Copper is strong for the second consecutive trading week. It’s set to record the strongest weekly gain since March. At 8:02 AM EST, COMEX copper was trading at $2.26 per pound on April 22. This is a gain of 0.40%. Positive economic releases from China—the world’s largest copper consumer—are supporting the positive sentiment around copper this week. Codelco is the world’s largest copper producer. On April 21, it declared that the production resumed at its El Teniente mine. The mine suspended production due to rain in the past five days. This week until April 21, copper gained 4.7%. Major producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) gained 6%, 7.3%, 9.9%, and 7.5%. This week, the SPDR S&P Metals & Mining ETF (XME) gained 3.9% until April 21.

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Silver shows strength and gold weakens

Silver looks stable at 11-month high price levels. It’s set to close the week with gains for the third consecutive time. Supporting economic data from China like improved investments, industrial activity, and household spending boosted silver prices in this week. Considering that silver has more demand from industrial consumers than gold, stronger factory data from China provided hope for improved demand. It supported silver prices. At 8:03 AM EST on April 22, silver was trading at $17.2 per ounce—a gain of 0.61%. Gold was trading at $1,248 per ounce—a fall of 0.18%.

Analysts at Goldman Sachs said that they’re maintaining a bearish outlook on gold. They recommended to short gold. They expect that the US labor market will strengthen. This will force the Fed to raise interest rates three times in 2016. This would make the dollar stronger. It would push gold lower. Since the beginning of this week, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) gained 4.4%, 9.6%, 6%, and 11.9%. The SPDR Gold Trust ETF (GLD) gained 1.3%.

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