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Gold is on track for a second week of losses; meanwhile, copper posted a slight gain at week’s end.
Gold hit a three-week low today, sliding below $1,300 per ounce briefly. The metal is on track for a second weekly decline as an improving US economic outlook bolsters the dollar and investors’ appetite for risk.
Spot gold hit its lowest price since February 12, briefly touching $1,285.36 per ounce in early morning trade. The yellow metal has recovered slightly, but is currently trading down 0.75 percent, or $9.75, at $1,293.64. Gold is on track for a 3-percent drop this week, according to Reuters.
“Market participants over the past days have started to look back at economic fundamentals and focus less on Russia, Crimea,” Credit Suisse (NYSE:CS) analyst Karim Cherif told the news outlet. “You will probably see prices continue to slowly slide downward and unless you see renewed concern about the economic side or Russia, which doesn’t seem to be the case, prices should fall.”
Silver fared a little better today, gaining 0.8 percent, or $0.16, to $19.80, Reuters states.
Copper for delivery in three months on the London Metal Exchange today rose to its highest price in two and a half weeks, as per The Wall Street Journal. Earlier in the day, the red metal rose 1.2 percent, or $79.70, hitting $6,642 per tonne.
Chinese Premier Li Keqiang said economic growth must be maintained at a “reasonable pace,” which suggests that the country’s government may be willing to implement stimulus measures should the economic slowdown continue. That is good news for copper investors as China is the largest single consumer of the metal.
On New York’s COMEX, copper futures for May delivery rose around 5 cents, or 1.8 percent, to $3.05 a pound, MarketWatch states. The metal has risen 3 percent over the course of the week.
Brent crude was down $0.07 today, at $107.76 per barrel, but according to Upstream, prices will likely gain around 1 percent for the week.
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