Copper weakened on Wednesday morning
After rising higher to more than seven-week high price levels on Tuesday, June 28, copper prices weakened in the early morning hours on June 29. At 6:52 AM EST, the COMEX copper futures contract for September delivery was trading at $2.17 per pound—a drop of ~0.21%. Read Why Did Copper Prices Reach a 7-Week High on June 28? to learn why copper prices rose on Tuesday. The weaker dollar supported copper prices on Wednesday morning.
Uncertainty about demand and economic health
Even though copper rose to almost a two-month high on June 28, uncertainty about the global economic stability amid the United Kingdom’s vote to leave the European Union is still weighing on the copper sentiment. On the other hand, uncertainty about the demand outlook for copper, especially about the domestic copper demand in China, is also keeping pressure on copper prices. The market is looking forward to the Chinese manufacturing PMI data that will release at 9:00 PM EST on June 30. The data are expected to give information about the domestic copper demand outlook for copper in China.
On June 28, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) gained 5.5%, 3.1%, 4.2%, and 3.4%, respectively. The SPDR S&P Metals & Mining ETF (XME) rose 2.2%.
Gold stabilized on Wednesday morning
After showing some weakness on June 28 amid the rebound in global markets, gold was trading positive in the morning on June 29 because of the weaker dollar. At 7:02 AM EST, the COMEX gold contract for August delivery was trading at $1,320.85 per ounce—a gain of ~0.23%. Silver was trading at $18.27 per ounce—a surge of ~2.1%. On June 28, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell 2.3%, 1.4%, 0.55%, and 0.38%, respectively. The SPDR Gold Trust ETF (GLD) fell 1.1%. Read Gold Eases as Global Markets Stabilize on June 28 to learn why gold fell on Tuesday.