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Copper Is Stable, Gold and Silver Struggle Early on August 11

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Aug. 11 2016, Published 7:41 a.m. ET

Copper is stable in the early morning

After rising on August 10, copper prices are stable in the early morning hours on August 11. At 7:10 AM EST on August 11, the COMEX copper futures contract for September delivery was trading at $2.18 per pound—a gain of ~0.37%.

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Market awaits Chinese data

The copper market is looking forward to the major Chinese economic data that are scheduled to release on August 12. The economic data includes fixed assets investment data, industrial production, and retail sales. China is the largest copper consumer—it accounts for almost half of the global consumption. The economic data from China will impact copper’s demand and price trends. On August 10, weakness in the US dollar supported copper prices and moved them higher.

On August 10, major copper producers Freeport-McMoRan (FCX), BHP Billiton (BHP), and Rio Tinto (RIO) fell 0.74%, 1.1%, and 1.1%, respectively. Glencore (GLNCY) gained 0.73%. The SPDR S&P Metals & Mining ETF (XME) fell 0.85 and the PowerShares DB Base Metals (DBB) gained 0.59%.

Gold and silver struggle in the early morning

Gold and silver were struggling in the early morning hours on August 11. At 7:20 AM EST on August 11, the COMEX gold futures contract for December delivery was trading at $1,351.55 per ounce—a drop of ~0.03%. The COMEX Silver futures contract for September delivery was trading at $20.17 per ounce—a drop of ~0.01%. The increased chance for an interest rate hike by the Fed is weighing on gold prices. Read Why Gold Is Closely Tied to Interest Rates to learn why interest rates impact gold prices.

On August 10, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) gained 1.3%, 1.2%, 1.5%, and 1.3%, respectively. The SPDR Gold Trust ETF (GLD) gained 0.46%.

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