Why Was Copper Weaker in the Early Morning on July 26

Val Kensington - Author

Aug. 18 2020, Updated 6:18 a.m. ET

Copper is weaker in early morning

After starting the week on a weaker note, copper is carrying the same weaker sentiment. At 6:30 AM EST on July 26, the COMEX copper futures contract for September delivery was trading at $2.21 per pound—a drop of ~0.45%.

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Market awaits China’s manufacturing data

Apart from the central bank meeting, there aren’t copper-related data driving copper prices on July 26. The market is looking forward to the Chinese manufacturing PMI (purchasing managers’ index) which is scheduled to release on July 31. Considering the fact that China is the largest copper consumer and the manufacturing industry is one of the major demand drivers for copper, China’s manufacturing PMI is important for the copper market. On Monday, copper prices fell lower and weakened copper miners’ prices. Major copper producers Freeport-McMoRan (FCX), BHP Billiton (BHP), and Rio Tinto (RIO) fell 2.3%, 0.98%, and 0.89%, respectively. Glencore (GLNCY) remained unchanged on July 25. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) fell 1.7% and 0.07%.

Gold and silver are stable in the early morning

After falling on July 25, gold and silver prices recovered moderately amid the weaker dollar in the early morning hours on July 26. At 6:40 AM EST on July 26, the COMEX gold futures contract was trading at $1,328.15 per ounce—a gain of ~0.09%. Silver was trading at $19.72 per ounce—a gain of ~0.35%. The market is looking forward to the outcome of the Fed’s meeting. On July 25, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell 3.5%, 2.8%, 2.6%, and 2.2%, respectively. The SPDR Gold Trust ETF (GLD) fell 0.7%. Read Miners Rise Following the Precious Metals to learn how precious metal prices impacted precious metal miners.


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