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Copper Gains, Gold and Silver Are Weaker Early on August 25

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Copper stable in the early morning

After falling for three consecutive trading days, copper was stable in the early morning hours on August 25. At 7:25 AM EST on August 25, the COMEX copper futures contract for September delivery was trading at $2.08—a gain of ~0.26%.

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Trading at two-month low levels

Copper has been weaker since the beginning of the week amid a recovery in the US dollar and looming concerns about the demand for copper from China. The surge in inventory levels in the LME (London Metal Exchange) also dented the sentiment. As of August 23, the copper inventory levels in the LME rose to 240,075 tons—the highest inventory level since the end of January. An increase in China’s copper exports and a decline in imports raised concerns about the demand for copper in China. China’s exports of unwrought copper and copper products rose to 75,022 tons in July—more than five times the increase from export figures in July 2015. China’s copper imports have been declining since April after reaching a peak in March.

On August 24, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) fell 7.4%, 2.7%, 2.2%, and 2%, respectively. The SPDR S&P Metals & Mining ETF (XME) and the PowerShares DB Base Metals (DBB) fell 5% and 1.4%.

Gold and silver are stable

Gold and silver are stable in the early morning hours on August 25. The market is looking forward to Fed Chair Janet Yellen’s speech at the annual central bankers meeting in Jackson Hole, Wyoming, on Friday. At 7:40 AM EST on August 25, the COMEX gold futures contract for December delivery was trading at $1,327.75 per ounce—a drop of ~0.14%. The COMEX silver was trading at $18.52 per barrel—a drop of ~0.18%.

On August 24, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell 9.6%, 7.6%, 8%, and 8.4%, respectively. The SPDR Gold Trust ETF (GLD) fell 1.1%.

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