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Copper, Gold, and Silver Are Weak in the Morning on July 18

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Jul. 18 2016, Published 8:00 a.m. ET

Copper started the week on a weaker note

Copper started the day on a weaker note. It fell in the early morning hours on Monday, July 18. At 7:00 AM EST, the COMEX copper futures contract for September delivery was trading at $2.21 per pound—a drop of ~1.1%. The relatively stronger dollar also weighed on copper prices early this morning.

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Weaker sentiment for copper

China’s house prices data released over the weekend. The data showed a slowdown in housing price growth and weighed on copper prices. According to data released by the National Bureau of Statistics, June’s housing prices in China rose by 0.71%—less than 0.84% in May and 1.0% in April. Lower growth in home prices raised doubts about the demand outlook for copper from China. It also weighed on copper prices. Considering that China accounts for more than 45% of the global copper demand, the trends for China’s real estate and construction sectors will influence the demand outlook.

On July 15, major copper producer Freeport-McMoRan (FCX) gained 1.2%. BHP Billiton (BHP), Glencore (GLNCY), and Rio Tinto (RIO) fell 1.43%, 1.45%, and 1.8%, respectively. The SPDR S&P Metals & Mining ETF (XME) gained 0.57% and the PowerShares DB Base Metals (DBB) fell 0.22%.

Gold and silver are weaker

Gold and silver are trading weaker in the early morning hours on July 18 as the failed Turkey coup took the shine out of safe-haven assets like gold. At 7:30 AM EST on July 18, the COMEX gold contract for the August delivery was trading at $1,325 per ounce—a drop of ~0.14%. Silver was trading at $19.85 per ounce—a drop of ~1.6%. On July 15, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell 0.33%, 0.7%, 0.91%, and 1.3%. The SPDR Gold Trust ETF (GLD) fell 0.38%.

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