Gold Posts Modest Gain After Rally; Copper Slips
Gold prices rose Friday, modestly building on strong gains in the previous session after better-than-expected data from China brightened the short-term outlook for metals demand.
Gold for December delivery GCZ3 -0.19% picked up $3.70, or 0.3%, to $1,313.80 an ounce in electronic trading. The contract was on track for a weekly rise of 0.3%.
Gold on Thursday rallied $24.60, or 1.9%, an ounce on the New York Mercantile Exchange, joined by a more than 3% jump in copper futures after China reported a surge in overall imports and exports in July.
China, the world’s largest copper consumer, said imports for copper rose 12% from a year ago, and increased 8.1% from June. September copper futures HGU3 -0.57% on Thursday responded with a jump of 10 cents, or 3.1%, to $3.27 a pound in Nymex trade.
In electronic trade Friday, however, copper futures stepped back by 2 cents, or 0.5%, to $3.25 a pound, though remaining at a two-month high.
Similarly, silver and platinum futures jumped more than 3% on Thursday but saw a pullbacks on Friday.
The Chinese trade data “surprised the market at the high end,” analysts at Haitong International Research told clients Thursday. However, “it’s too early to claim an overall recovery of global and domestic demand.”
Haitong cited measures the government has recently introduced to bolster trade and said it expects “both exports and imports to pick up in the second half of 2013 on recovering demand and supportive policies.”
Gold futures also held their gains after China said Friday that consumer prices in July held steady on an annual basis, rising 2.7%. The result was below a Dow Jones Newswires forecast of a 2.8% gain. Wholesale prices, meanwhile, fell further.
Reports on Chinese industrial output, retail sales and fixed-asset investment were due out later Friday.
Also Friday, September silver SIU3 -0.51% was off 4 cents, or 0.2%, at $20.16 an ounce in the wake of Thursday’s leap of 68 cents, or 3.5%.
October platinum PLV3 -0.39% turned lower, trading down $1.60, or 0.1%, to $1,490 an ounce. They had closed Thursday with a gain of $53.30, or 3.7%.
September palladium PAU3 +0.11% , meanwhile, rose $2.20, or 0.3%, to $740.75 an ounce, extending its 2.1% bounce in the previous session.
Source: Marketwatch
