Gold trading up, silver trading down, and copper gains strength on Monday as a number of fundamentals come together to support varying bias’ across the markets.
Copper futures (May 14 delivery) are down 0.013 points (-0.43%) heading into the European lunchtime, currently trading at 3.029, just shy of early march resistance at 3.045. The industrial metal suffered throughout the latter half of February and early March, as fears of an economic slowdown in China weighed on expected demand. For the last three weeks, volatile action has averaged out to something of a contraction, but the metal remains down for the month.
Key economic data out of China early Tuesday morning will likely help traders form a short to medium term bias as to the direction of copper. The China Logistics Information Center will report the latest manufacturing PMI data at 02:00 GMT Tuesday. Consensus forecasts the figure at 50.3, a small increase on the previous release of 50.2. Similarly, HSBC will report the manufacturing PMI data 45 minutes later. Consensus forecasts the data unchanged on the previous figure at 48.1.
Similarly, gold futures (June 14 delivery) are down, with gold trading at 1,293.30, a 0.08% discount on the day’s open. The situation in Crimea, and the risk off sentiment it incurred, drove a steep gain in the price of the yellow metal, with gold trading up throughout the first two weeks of February. Sentiment shifted mid-March however, and a spate of positive US data drove equity investment and a sell off in gold trading. As with copper, gold futures remain down overall for the month as we head into its close.
In a rare contrast to their more valuable counterpart, silver futures (May 14 delivery) are up 0.16 %, currently hovering around daily support at 19.822.
Key data out of the US, coupled with a Janet Yellen speech, will likely drive some volatility in the metals throughout the day and heading into midweek. Chicago PMI and the Yellen speech are scheduled for Monday US morning, both of which have the potential to spark some volatility in the gold trading and silver trading markets, and dictate short-term sentiment.
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