How Copper, Gold, and Silver Performed on May 25
A Snapshot of Commodities' Performances on May 25
Copper holds at 2-week high levels
Copper inched higher on Wednesday, May 25, 2016, due to surging oil prices and the weaker US dollar. At 2:40 PM EST, COMEX copper futures contracts for July delivery were seen trading at $2.10 per pound, a rise of 1.8%.
The Market awaits China’s manufacturing data
The surge in oil prices and better-than-expected US new home sales data were some of the factors supporting the sentiment around the copper market on May 25. On the other hand, uncertainty over copper demand growth in China is weighing on copper prices.
Even though March 2016 Chinese economic data raised hopes of increased copper demand in China, the country’s weaker-than-expected economic data in April raised uncertainty. The Market is looking forward to China’s manufacturing PMI (purchasing managers’ index) data, which is scheduled to release next week, to gauge the strength of demand.
Considering the fact that the China is the world’s largest consumer of copper, the country’s major economic releases will likely have an impact on copper prices.
As of 2:43 PM EST on May 25, major copper producers Freeport-McMoRan (FCX), Glencore (GLNCY), BHP Billiton (BHP), and Rio Tinto (RIO) rose 5.4%, 4%, 4.3%, and 2.8%, respectively. The base metals–related SPDR S&P Metals & Mining ETF (XME) rose 4.3%.
Gold continues to fall
After a disappointing performance on May 24, 2016, gold has continued to fall and is trading near seven-week lows. At 2:58 PM EST on May 25, gold futures for June delivery were trading at $1,224.90 per ounce, a fall of 0.35%. Silver was trading at $16.32 per ounce, a rise of 0.41%.
Better-than-expected US new home sales data and comments from top Federal Reserve officials have increased the odds of an interest rate hike at the June 2016 Federal Open Market Committee meeting. This has weighed on gold prices.
As of 3:00 PM EST on May 25, precious metals producers Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Silver Wheaton (SLW) rose 3.3%, 2.8%, 4.0%, and 2.6%, respectively. The precious metals–based SPDR Gold Trust ETF (GLD) fell 0.25%.
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