Copper continues to fall
After starting this week on a weaker note, copper is falling for the fourth trading day of the week. It’s influenced by the stronger dollar and weak Chinese economic data. At 7:53 AM EST, the COMEX copper futures contract for July delivery was trading at $2.16 per pound—a loss of 1.0%.
The strong March economic data raised hopes of increased demand from China—the largest copper consumer. However, the purchasing managers’ index data from China released this week. It was weaker than expected. It raised concerns about the strength of the Chinese economy. The upcoming Chinese economic data regarding its April performance is expected to provide information on the strength of China’s economy. In addition to this, the stronger dollar is hurting copper prices this week. On May 4, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) fell 1.8%, 5.5%, 6.6%, and 2.8%, respectively. The Power-Shares DB Base Metals Fund (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell 0.62% and 2.3%.
Gold and silver look forward to job data
Gold and silver look stable on Thursday morning. They’re trading higher. At 7:54 AM EST, the COMEX gold futures contract for June expiry was trading at $1,283.50 per ounce—a gain of 0.71%. Silver is trading 1.2% higher at $17.50 per ounce. Precious metal investors are looking forward to the US unemployment rate data. The data are scheduled to release at 8:30 AM EST on May 6. The data help investors know about economic conditions in the US. Economic conditions influence the interest rate decision. On Thursday, the stronger dollar is still keeping pressure on precious metal prices.
On May 4, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) fell 5.0%, 4.4%, 2.7%, and 3.5%, respectively. The SPDR Gold Trust ETF (GLD) fell 0.61%. The iShares Silver Trust (SLV) fell 0.48% on May 4.