uploads///Copper

Copper Fell and Gold Stabilized on July 5

Val Kensington - Author
By

Nov. 20 2020, Updated 2:47 p.m. ET

Copper is weaker on July 5 

Copper prices fell on July 5 amid weak economic outlook and demand concerns. At 6:40 AM EST, the COMEX Copper futures contract for September delivery was trading at $2.2 per pound—a drop of 0.81%. On Tuesday morning, the firm dollar also weighed on copper prices.

Article continues below advertisement

Enough support from the economic stimulus?

The Market has been expecting stimulus from major central banks due to economic uncertainties triggered by the United Kingdom’s vote to leave the European Union. Some analysts think that the economic stimulus won’t be enough to support the current economic situation. This sentiment is weighing on copper prices this morning. Considering that China accounts for more than 45% of the copper demand, the economic health and stimulus from China’s central bank will impact copper prices. The Market is looking forward to the Chinese consumer price index data scheduled to release on July 9. Read Can You Expect Monetary Easing in China post-Brexit? for more on speculations about China’s monetary easing.

In the last week, major copper producers Freeport-McMoRan (FCX), Rio Tinto (RIO), Glencore (GLNCY), and BHP Billiton (BHP) gained 12.0%, 14.0%, 9.1%, and 12.7%, respectively. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) gained 12.2% and 5.4%.

Gold and silver stabilized on Tuesday morning

Gold and silver prices remained stable in the morning on July 5. They traded near two-year high price levels. At 6:49 AM EST on July 5, the COMEX gold futures contract for August delivery was trading at $1,348.25 per ounce—a gain of ~0.69%. Silver was trading at $19.77 per ounce—a gain of ~0.91%. Last week, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) gained 5.2%, 7.0%, 12.6%, and 7.7%, respectively. The PowerShares DB Gold ETF (DGL) rose 2.0%.

Advertisement

Latest Rio Tinto PLC News and Updates

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.