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Copper Prices Are Weaker and Gold Eases on Thursday Morning

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Copper prices are weaker

Copper prices remain weaker on Thursday morning due to the recovery of the US dollar and weaker-than-expected Chinese inflation data. At 7:19 AM EST, the COMEX copper futures contract for July delivery was trading at $2.05 per pound—a loss of 0.32%.

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Weak signs of demand from China

Copper’s movement from Chinese warehouses to the LME (London Metal Exchange) pulled copper prices down on June 7. It’s still weighing on copper sentiment. Also, the weaker-than-expected Chinese consumer price index fell 0.5% in May—worse than the fall of 0.2% in April. This weakened the sentiment. To learn more about how the increase in LME stocks pulled copper prices down, read Copper Was by Far the Worst Commodity Performer on June 7.

On June 8, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) gained 3.0%, 4.5%, 3.1%, and 1.8%, respectively. The SPDR S&P Metals & Mining ETF (XME) gained 4.1%.

Dollar recovery weighs on gold prices

After rising to three-week high price levels on June 8, gold prices eased on Thursday morning due to the recovery in the US dollar. The decreased probability of an early interest rate high supported gold prices. They reached three-week high levels this week. Read Why Gold Is Closely Tied to Interest Rates to learn how closely gold prices are related to the interest rates.

At 7:33 AM EST, the COMEX gold for August delivery was trading at $1,261.65 per ounce—a fall of 0.05%. Silver was trading at $17.05 per ounce. On June 8, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) gained 2.1%, 1.2%, 4.1%, and 1.4%. The SPDR Gold Trust ETF (GLD) gained 1.5% on June 8.

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