Copper is trading lower this morning
Copper is trading lower on Thursday due to concerns about demand as well as the stronger dollar. At 6:36 AM EST, the COMEX copper futures contract for July delivery was trading at $2.06—a decline of 1.1%.
Weak economic data from China
Weak economic data from China are is raising doubts about the demand. It’s keeping pressure on copper prices. Considering that China is the largest copper consumer, the major economic releases from China will impact copper prices. China accounts for more than 45% of the global copper usage. The stronger dollar along with weak Chinese data is weighing on copper prices. On Wednesday, copper closed lower along with its producers. Major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) fell 8.4%, 3.3%, 3.4%, and 3.3%, respectively. The Power-Shares DB Base Metals Fund (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell 0.73% and 6.1%.
Gold and silver are trading lower
At 6:37 AM EST, the COMEX gold contract for June delivery was trading at $1,254.85 per ounce—a decline of 1.5%. Silver is trading at $16.68 per ounce—a fall of 2.6%. The stronger dollar gained strength after the FOMC (Federal Open Market Committee) meeting minutes. It pulled gold to a three-week low. According to FOMC members, the June interest rate hike is appropriate if the upcoming economic data are supportive along with strong inflation and unemployment.
On Wednesday, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) fell 9.0%, 5.7%, 5.7%, and 7.5%, respectively. The SPDR Gold Trust ETF (GLD) fell 1.7% on May 18.