Copper futures retreated from a three-week high as mines in the worlds biggest producer, Chile, were returning to normal activities after an earthquake and tsunami forced the nations authorities to order a massive evacuation. Meanwhile, gold prices hovered close to a seven-week low as investors weighed signs of increasing physical demand against prospects for reduced stimulus in the US. Silver also declined.
On the Comex division of the New York Mercantile Exchange, copper futures for settlement in May fell by 0.62% to trade at $3.027 a pound by 09:03 GMT. Prices shifted in a daily range between $3.039 and $3.015 a pound. Yesterday, the metal touched $3.074 a pound, the strongest since March 9.
According to a statement by BHP Billiton Ltd. released today, the Coloso port, which handles ore from the world’s largest copper mine, Escondida has resumed normal operations. Yesterday, the operator of the mine evacuated the port following government recommendations. The operator of the Collahuasi mine already announced yesterday that operations at the mine have returned to normal, with no damage or injuries from the quake.
A powerful earthquake struck off the coast of Chile at 09:00 p.m. local time on Tuesday, leading to the death of five people. According to data by the US Geological Survey, the earthquake struck about 95 kilometers northwest from the city of Iquique, near the border with Peru, triggering tsunami waves.
“There’s been no report of any significant damage at mine and port operations in Chile’s earthquake-hit area,” said Kazuhiko Saito, a Tokyo-based analyst at commodities broker Fujitomi Co., cited by Bloomberg. “The market was also shrugging off China’s announcement for measures to support growth yesterday”, he added.
Yesterday, the Chinese government announced it will start a massive infrastructure project, railway building in less-developed regions, which will be funded by a sale of government bonds worth 150 billion yuan (approximately $24 billion). China is the worlds largest consumer of the red metal.
Meanwhile, on the Comex division of the New York Mercantile Exchange, gold futures for settlement in June traded at $1 287.10 an ounce by 09:05 GMT, losing 0.29% for the day. Prices shifted in a tight daily range between $1 294.20 an ounce and $1 285.80 an ounce. On April 1, gold prices touched $1 278.10 an ounce, the weakest level since February 11.
Bullion has lost 3.1% in March as the US economy expanded at a faster-than-expected pace and after Federal Reserve Chair Janet Yellen said the central bank’s bond-buying program may be brought to an end this fall, with borrowing costs starting to rise by mid-2015. The Federal Reserve trimmed its monthly bond-buying program by $10 billion at the last three meetings.
Australia & New Zealand Banking Group Ltd.’s physical demand gauge accelerated toward the end of last month, according to a note by analysts working for the bank.
In India, which was overtaken by China as the world’s top consumer of the precious metal after restricting imports, the Reserve Bank of India Governor Raghuram Rajan said yesterday slow and steady steps were needed to remove the curbs.
Elsewhere on the Comex, silver futures for May delivery fell by 0.87 percent to trade at $19.875 an ounce by 09:05 GMT. The precious metal, has lost 7% in March, registering a second monthly decline since the start of the year. Platinum futures for July delivery traded little changed at $1 438.95 an ounce. Palladium futures for June delivery traded at $787.70 an ounce, losing 0.01%. The metal has risen 8% this year on concern more sanctions by the US and the EU on Russia and a strike at South African mines may reduce supplies. The two countries are the biggest producers of palladium.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
