Copper Was Positive, Precious Metals Weakened This Morning



Chinese Investments Supporting Copper

Copper stayed positive on Thursday morning. At 7:43 AM EST, the COMEX copper futures contract for July delivery was trading at $2.12 per pound—a gain of 0.83%. Optimism surrounded the copper market after the Chinese government announced its plans to invest in transport infrastructure. The Chinese government planned to invest $770 billion dollars, or 5 trillion Chinese yuan, over the next three years in transport infrastructure. This is expected to boost the metal demand and take the prices higher.

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Market is waiting for Chinese data

The Market is looking forward to major Chinese economic data like fixed-asset investment, industrial production, and retail sales. The data are scheduled to release on May 14. The stronger dollar on Thursday morning is keeping the pressure on copper prices. On Wednesday, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), and BHP Billiton (BHP) gained 6.9%, 1.30%, and 0.66%. Rio Tinto (RIO) fell 0.64%, respectively. The Power-Shares DB Base Metals Fund (DBB) and the SPDR S&P Metals & Mining ETF (XME) gained 1.1% and 1.2%.

Gold and silver look weaker

There was some weakness in gold and silver’s price movement on Thursday morning. The stronger dollar is keeping the pressure on precious metal prices on Thursday. The Market is looking forward to the jobless claims data. The data are scheduled to release at 8:30 AM EST. In addition, the Market is following Fed members’ speeches that are scheduled for today. This will help the Market estimate the timing of the interest rate hike. It’s expected to impact the dollar and gold. At 7:44 AM EST, the COMEX Gold futures contract for June delivery was trading at $1,269.05 per ounce—a loss of 0.51%. Silver is trading at $17.29 per ounce—a loss of 0.17%.

On Wednesday, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) gained 2.8%, 2.6%, 1.5%, and 4.7%, respectively. The SPDR Gold Trust ETF (GLD) is trading 0.94% higher.


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