Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Copper Prices Slump on Weak Chinese Factory Data, Gold Holds Steady

Commodities Jul 31, 2022 09:52PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
XAU/USD
+0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
-0.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ambar Warrick

Investing.com -- Copper prices sank on Monday after weak Chinese factory data pointed to slowing demand for the metal, while gold prices steadied around three-week highs.

As of 09:13 pm ET (0113 GMT), Copper futures fell 1.2% to $3.5503 a pound- near their lowest level in over one year.

Chinese factory output unexpectedly shrank in July as fresh curbs in the wake of rising COVID-19 cases dented economic activity. The official purchasing managers index (PMI) came in at 49 for July, below expectations of 50.4, and June’s reading of 50.2.

While the country’s overall business activity still remains in expansion territory, a drop in manufacturing bodes poorly for its import of commodities. Chinese demand accounts for a sizable portion of the global iron ore and base metals market. Oil prices also sank in reaction to the data.

A potential crisis in China’s debt-saddled real estate market also points to more pressure on copper and iron ore prices this year, given their widespread use in the sector.

While metal prices had gained substantially this year on supply shocks from the Russia-Ukraine conflict, they have since consolidated sharply amid rising inflation and interest rates across the globe.

This, coupled with a potential economic recession, is also expected to damage metal demand through the remainder of the year. The U.S. economy shrank for two consecutive quarters this year, while the European Central Bank recently flagged a recession risk in 2022.

Amid an increasingly dire economic outlook, gold futures prices held steady after rising to a more-than-three-week high last week. Spot gold traded at $1,763.64 an ounce on Monday, down marginally from its previous close.

Other precious metals were also steady. platinum traded at $889.90, while silver futures were largely unchanged at $20.145. Still, the space is largely expected to come under pressure as U.S. interest rates rise further in 2022.

The Federal Reserve hiked rates by 75 basis points last week, and said that more raises were likely in the face of sky-high inflation.

Copper Prices Slump on Weak Chinese Factory Data, Gold Holds Steady
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email