Copper futures rose for a second time in three days amid speculation China will take measures to spur economic growth and on concern that supplies from a mine in Chile may be disrupted. Meanwhile, gold traded declined to more than a one-month low, while silver hovered near the weakest level in 1-1/2 months.
On the Comex division of the New York Mercantile Exchange, copper futures for settlement in May surged by 1.5% to trade at 2.990 a pound by 12:38 GMT. Prices shifted in a daily range between $2.994 and $2.940 a pound. On March 19, prices touched $2.877 a pound, the weakest level since July 2010. The metal has lost 12% so far this year.
Chinese manufacturing activity contracted for a fifth consecutive month, data showed yesterday, fueling speculation policy makers in the worlds second-largest economy will step in to spur economic growth. China is the worlds largest consumer of copper.
Copper prices also drew support after it became clear that Anglo American Plc have stopped work at its largest copper mine in Chile after protests by contract workers turned violent. Anglo American Plc is a British multinational mining company and is the worlds top platinum producer and one of the largest producers of copper.
“Expectations for more stimulus by the Chinese government provided a boost for copper,” said Chae Un Soo, a metals trader at Korea Exchange Bank Futures Co. in Seoul, cited by Bloomberg. “The market was also supported by the operation halt by Anglo American’s mine in Chile”, he added.
Meanwhile, on the Comex division of the New York Mercantile Exchange, gold futures for settlement in June fell by 0.17% to trade at $1 308.90 an ounce by 12:39 GMT. Prices shifted in a daily range between $1 317.90 an ounce and $1 306.20 an ounce, the weakest level since February 14.
Bullion has retreated from a six-month high of $1 392.60 an ounce on March 17 as turmoil over Ukraine left Russia and the West involved in their worst conflict since the end of the Cold War. The precious metal slid 3.5% last week, the most since the week ended November 22, after the Federal Reserve announced on March 19, its third $10 billion reduction in the monthly bond-buying program to $55 billion per month.
While gold is up 9% this year amid concern the economic growth of the US may be slowing momentum and amid unrest in Ukraine, Goldman Sachs Group Inc. forecast further declines as the world’s biggest economy rebounds.
Jeffrey Currie, Goldman’s head of commodities research, said in a Bloomberg News interview this month that there are increasing chances, prices would reach $1,000 for the first time since 2009.
Elsewhere on the Comex, silver futures for May delivery fell 0.1 percent to trade at $20.050 an ounce by 12:40 GMT. Yesterday, the price touched $19.905 an ounce, the weakest level since February 7. Platinum futures for July delivery traded little changed at $1 433.05 an ounce. Palladium futures for June delivery fell by 1 percent to $786.60 an ounce. Yesterday, the price touched $802.40 an ounce, the strongest level in 2-1/2 years amid concern the sanctions on the largest supplier of the metal, Russia may reduce supplies.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
