Copper futures eased off from two-week highs on concern economic growth is faltering and default risks are increasing in the worlds largest consumer, China at a time when global supplies are piling. Meanwhile, gold futures edged slightly higher, while silver distanced further from the weakest level in 1-1/2 months.
On the Comex division of the New York Mercantile Exchange, copper futures for settlement in May fell by 0.7% to trade at 2.985 a pound by 13:04 GMT. Prices shifted in a daily range between $3.013 and $2.978 a pound. Yesterday, prices touched $3.018 a pound, the highest since March 11. The metal has lost 11% so far this year.
Yesterday, copper prices drew support amid speculation China will take measures to spur economic growth and on concern that supplies from a mine in Chile will be disrupted after Anglo American Plc announced it stopped work at the companys largest copper mine in the country after protests by workers turned violent. Anglo American Plc is a British multinational mining company and is the world’s top platinum producer and one of the largest producers of copper.
China has headed for a “mini crisis” in its local-government debt market as economic reforms lead to defaults, Li Daokui, a former member of the People’s Bank of China’s monetary policy committee, said yesterday, cited by Bloomberg. Last month Chinese exports plunged, while retail sales and manufacturing output expanded at a slower pace in the first two months of the year.
According to data compiled by the metals researcher CRU, the global surplus of copper may reach 140 000 tons in 2014, almost four times larger than previously estimated as demand in the biggest consumer, China, slows.
Meanwhile, gold futures edged slightly higher as investors weighed the prospect of reduced Fed stimulus against increasing demand for a haven amid tensions in Ukraine.
On the Comex division of the New York Mercantile Exchange, gold futures for settlement in June rose by 0.08% to trade at $1 312.40 an ounce by 13:05 GMT. Prices shifted in a daily range between $1 316.90 an ounce and $1 309.90 an ounce. Yesterday, gold futures touched $1 306.20, the weakest level since February 14th.
The precious metal slid 3.5% last week, the most since the week ended November 22, snapping six weeks of advances.
While gold is up 9% this year amid concern global economic growth may be slowing momentum and amid unrest in Ukraine, Goldman Sachs Group Inc. forecast further declines, with prices likely to reach $1 000 an ounce for the first time since 2009, as the US economy rebounds.
Elsewhere on the Comex, silver futures for May delivery rose by 0.26 percent to trade at $20.030 an ounce by 13:05 GMT. On March 24, the price touched $19.905 an ounce, the weakest level since February 7. Platinum futures for July declined 0.5 percent to trade at $1 415.95 an ounce. Palladium futures for June delivery fell by 1.62 percent to $776.60 an ounce. On March 24, 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.
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