Copper trades with less momentum
After rising higher to three-week high price levels on September 15, copper eased in the early hours on September 15. At 7:20 AM EST on September 15, the COMEX copper futures contract for December delivery was trading at $2.15 per pound—it fell ~0.19%. The absence of Chinese traders due to the holiday could lead to a thin trade for copper today.
China’s data supported copper prices
The string of supporting Chinese economic data released over the weekend improved the sentiment in the copper market. China is the largest copper consumer. It accounts for about 45% of the total global consumption. As a result, China’s economic data influence copper’s price and demand trends. Following better-than-expected industrial production and fixed investment data on September 14, the People’s Bank of China reported a rise in new loans to 948.7 billion yuan. This is better than the market’s expectation of 750 billion yuan. Read Why Did Copper Touch a 3-Week High on September 14? to learn more about the factors that helped copper rise.
On September 15, major copper producers Freeport-McMoRan (FCX) fell 3.5%, while Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) fell 2.6%, 2%, and 1.7%, respectively. The SPDR S&P Metals & Mining ETF (XME) fell 0.37% and the PowerShares DB Base Metals (DBB) gained 1.3%.
Gold and silver are steady in the early hours
After posting moderate gains on September 14, gold and silver are stable in the early hours on September 15. At 7:25 AM EST, the COMEX gold futures contract was trading at $1,324.45 per ounce—a drop of 0.12%. Silver was trading at $19.07 per ounce—a gain of 0.01%. On September 15, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) fell 0.64%, 1.1%, and 0.12%, respectively. Silver Wheaton (SLW) gained 0.71%. The SPDR Gold Trust ETF (GLD) gained 0.33%. The market is waiting for the two-day Fed meeting scheduled to start on September 20.