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Copper, Gold, and Silver Are Weaker Early on August 12

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Copper is weaker in the early morning

After gaining for two consecutive trading days, copper prices fell in the early morning hours on August 12 due to disappointing Chinese data. At 6:40 AM EST on Friday, August 12, the COMEX copper futures contract for September delivery was trading at $2.16 per pound—a drop of ~1.6%.

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Chinese data disappoint the market

The Chinese economic data released at 10:00 PM EST on August 11 disappointed the market. According to the data, the fixed asset investment for July grew 8.1%—lower than the market’s forecast of 8.8%. China’s industrial production witnessed YoY growth of 6% in July—behind the market’s expectation of 6.1% growth. Retail sales in July grew 10.2%—slower than the market’s forecasted growth of 10.5%. Considering that China is the largest copper consumer, China’s major economic releases will impact copper’s price and demand trends.

On August 11, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) gained 0.71%, 2.1%, 2.1%, and 1.2%, respectively. The SPDR S&P Metals & Mining ETF (XME) fell 0.25% and the PowerShares DB Base Metals (DBB) gained 0.29%.

Gold and silver are weaker in the early morning

Gold and silver prices are weaker in the early morning hours on August 12 as the market awaits the US economic data scheduled to release today. The market is also waiting for the consumer sentiment report and US retail sales data to gauge the strength of the US economy and find clues on the timing of an interest rate hike. At 7:10 AM EST on August 12, the COMEX gold futures contract for December delivery was trading at $1,345.10 per ounce—a drop of ~0.37%. The silver contract for September delivery was trading at $19.87 per ounce—a drop of ~0.76%.

On August 11, precious metal producers Silver Wheaton (SLW) gained 1.3%, while Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) fell 0.18%, 0.31%, and 1.7%, respectively. The SPDR Gold Trust ETF (GLD) fell 0.68%.

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