Commodities trading outlook: gold, silver and copper futures

Gold and silver futures were higher during midday trade in Europe today, as the US and EU stepped up sanctions against Russia. Meanwhile, copper futures were lower.

Gold futures for delivery in August traded for $1 304.9 per troy ounce at 12:53 GMT on the COMEX in New York today, up 0.39%. Daily high and low stood at $1 308.8 and $1 298.1 per troy ounce, respectively. The contract added 0.21% yesterday, and has lost about 3% so far this week.

Meanwhile, silver contracts for September stood at $20.890 per troy ounce, for a gain of 0.55%. Daily high and low were at $20.940 peak, and $20.760 per troy ounce, respectively. The silver contract lost 0.55% on Wednesday, and is also down some 3% this week.

Several reports on the US economy were posted today. Initial jobless claims for the week ended July 12 were logged at 302 000, slightly improving on the previous weeks reading, while continuing applications for unemployment benefits were at 2.507 million for the week through July 5, also slightly better than before.

Building permits dropped 4.2% in June, disappointing after an increase of 4.2% was expected. Permits had dropped a further 6% in May. Meanwhile, housing starts also plummeted by 9.3% in June, after a further downgraded 7.3% drop in May.

Ukraine

The US and EU stepped up sanctions against Russia, as Moscow’s efforts to deescalate tensions in Ukraine are seen as insufficient. In addition to expanding the list of individuals, the US also targeted Gazprombank, the Russian gas giant’s bank, Rosneft and the Kalashnikov concern, limiting their access to US capital markets.

“The Russian leadership will see once again that its actions in Ukraine have consequences,” US President Obama said. “Ukrainians deserve to forge their own destiny”.

The EU also added that the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) would stop financing projects in Russia. The EIB alone has provided more than €1.6 billion for Russian ventures since 2003.

Meanwhile, a spokesman for the Ukraine’s defense ministry said that a warplane of the military had been shot down by a Russian jet late on Wednesday. Previously, Kiev said that it was a Russian rocket, which downed another Ukrainian plane last week, while also saying that a Russian plane had hit an eastern Ukrainian town.

The Kremlin has denied all accusations.

Copper

Copper futures for settlement in September dropped 0.08% to trade at $3.2120 per pound at 12:52 GMT today on the COMEX in New York. Prices shifted in a daily range between $3.2020 and $3.2230 per pound. The contract dropped 1.08% yesterday added 0.02% yesterday, after losing 0.61% on Monday.

Copper is lower “due to these sanctions and if Russia does trigger some action from their side, the sell-off could become worse,” Naeem Aslam, chief market analyst at Ava Capital Markets Ltd. in Dublin, said for Bloomberg.

Previously, several key readings on the Chinese economy, the world’s top copper consumer, accounting for about 40% of total demand, were reported earlier today. GDP growth for Q2 of 2014 was logged at 2.0% on a quarterly basis and 7.5% year-on-year.

Industrial production for June was at a 9.2% annual growth, also above expectations, while fixed asset investments, also for June, added 17.3% since a year ago.

All figures stand above expectations and add on their respective previous reading.