By Ambar Warrick
Investing.com-- Copper prices saw volatile swings on Monday as investors weighed data showing that China continued to accumulate the red metal despite a manufacturing slowdown, while gold held steady ahead of key U.S. inflation data due later in the week.
As of 2155 ET (0155 GMT), copper futures rose 0.1% to trade at $3.555 a pound, after falling as much as 0.2%. While China’s overall imports grew slower than expected in July, customs data showed that the country’s pace of copper buying remained steady.
Copper and copper products imported into the country totaled 463,693.8 tonnes in July, compared with 424,280.03 tonnes last year, Reuters reported.
The data contrasts trends showing a sharp decline in Chinese manufacturing activity. But China logged a record trade surplus in July, underpinned by strong exports as overseas demand for its manufactured goods remained strong.
Copper prices have been on a downturn since last week, when a swathe of weak industrial activity readings from across the globe drove concerns over sluggish demand. China’s factory activity unexpectedly contracted in July. But this trend may change in the coming months as more parts of the country emerge from COVID-related lockdowns.
A stronger-than-expected U.S. payrolls reading also propped up the dollar, pressuring most metal prices. The reading saw investors raise their expectations of a sharp interest rate hike by the Federal Reserve next month.
Focus now turns to key U.S. CPI inflation data, due on Wednesday, for more cues on monetary policy. A stronger-than-expected reading is likely to force the Fed into hiking lending rates sharply- a move that will be detrimental to metal prices.
Among precious metals, Gold prices held steady despite strength in the dollar, as concerns grew over a global recession. The yellow metal benefited from increased safe haven demand last week, amid growing tensions between the United States and China.
Spot gold was largely unchanged around $1,774 an ounce, while Gold futures were steady just below $1,800. Demand for gold is expected to be underpinned in the coming days by uncertainty over the scale of U.S. interest rate hikes.
Platinum Futures dropped 0.7%, while Silver shed 0.2%.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.