Freeport Indonesian Unit May Start Exporting Copper Concentrate Wednesday -CEO

                 PT Freeport Indonesia may start exporting copper concentrate on Wednesday after it reached an agreement with the government late last month to resume the exports after a six-month stalemate.

Freeport Indonesia's Chief Executive Rozik Soetjipto said that the local unit of U.S. copper and gold producer Freeport-McMoRan Inc. (FCX) may resume overseas shipments with 10,000 metric tons of the mineral bound for China.

The Indonesian government in January imposed an export ban on unprocessed ores aimed at keeping lucrative refining work within the country. In addition to the ore-export ban, the government in January imposed export duties on mineral concentrates of copper, iron, zinc, and manganese. The duties, which begin at 20%-25%, would rise to 60% before a complete ban on concentrate exports is imposed in 2017.

The government and Freeport Indonesia on July 25 struck a deal allowing the miner to pay lower export taxes as it agreed to build a smelter in Indonesia.

Director General of Coal and Mineral Resources Sukhyar said then that Freeport Indonesia's total copper-concentrate exports are expected to reach 756,300 tons by year-end, with an estimated value of $1.56 billion. - morningstar

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Gold / Silver / Copper futures - weekly outlook: August 4 - 8

                                     Gold futures bounced off a six-week low to end Friday’s session almost 1% higher, following the release of weaker than expected U.S. nonfarm payrolls data for July.

On the Comex division of the New York Mercantile Exchange, goldfor December delivery jumped 0.94%, or $12.00, on Friday to end the week at $1,294.80 a troy ounce.

Prices fell to a session low of $1,281.00 an ounce earlier Friday, the weakest level since June 19.

Gold prices were likely to find support at $1,276.20, the low from June 19 and resistance at $1,314.60, the high from July 29.

Gold regained strength after the U.S. Department of Labor said non-farm payrolls rose by a seasonally adjusted 209,000 in July, below expectations for an increase of 233,000.

The unemployment rate ticked up to 6.2% last month from 6.1% in June. Analysts had expected the jobless rate to hold steady at 6.1% in July.

The disappointing jobs report dampened optimism over the strength of the labor market and reduced expectations that the Federal Reserve will begin to raise rates sooner than previously thought.

Despite Friday’s strong gains, Comex gold prices declined 0.65%, or $8.50, on the week, the third consecutive weekly loss, as strong U.S. economic data underlined the view that the recovery is gaining momentum.

Official data on Wednesday showed that U.S. economy grew at an annual rate of 4.0% in the three months to June, outstripping forecasts of 3.0% and following a contraction of 2.1% in the first three months of the year.

Meanwhile, the Fed cut its asset purchase program by $10 billion to $25 billion per month at the conclusion of its two-day meeting on Wednesday, staying on course to end the bond-buying program in October.

Gold has been under heavy selling pressure in recent weeks as an improving U.S. economy fuelled speculation that the Fed will hike interest rates sooner than expected, which would reduce the need for gold for use as a hedge against loose monetary policy.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers decreased their bullish bets in gold futures in the week ending July 29.

Net longs totaled 122,092 contracts, down 10.3% from net longs of 136,120 in the preceding week.

Also on the Comex, silver for September delivery shed 0.2%, or 4.1 cents, on Friday to settle the week at $20.37 a troy ounce. Prices slumped to a daily low of $20.24 earlier in the session, the cheapest since June 19.

On the week, the September silver futures contract lost 1.26%, or 26.0 cents, the third straight weekly decline.

Data from the CFTC showed that net silver longs totaled 41,699 contracts as of last week, compared to net longs of 46,221 contracts in the preceding week.

Elsewhere in metals trading, copper for September delivery declined 0.51%, or 1.6 cents, on Friday to end the week at $3.214 a pound by close of trade.

On the week, Comex copper prices fell 0.8%, or 2.9 cents a pound, as investors gauged the health of China’s manufacturing sector.

Official data released Friday showed that China's manufacturing purchasing managers’ index rose to a two-year high of 51.7 in July from 51.0 in June, beating market expectations for a 51.4 reading.

Still, China's HSBC final manufacturing PMI for July ticked down to 51.7 from a preliminary reading of 52.0. Analysts had expected the index to remain unchanged.

China is the world's biggest buyer of copper, accounting for roughly 40% of the market.

According to the CFTC, net copper longs totaled 38,859 contracts as of last week, down from net longs of 44,107 contracts in the preceding week.

In the week ahead, investors will be focusing on the outcomes of a spate of central bank meetings, with the European Central Bank, the Bank of Japan, the Bank of England and the Reserve Bank of Australia all to hold monetary policy assessments. - investing.com

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Asia Stocks Rise as H Shares Head for Bull; Soybeans Gain

                      Asian stocks rose, with a gauge of Chinese shares in Hong Kong heading toward a bull market, while Treasuries and oil slipped as investors await data on U.S. services before the Federal Reserve meets this week. Soybeans and corn rallied.

The MSCI Asia Pacific Index (MXAP) added 0.3 percent by 12:33 p.m. in Tokyo, following last week’s 1.4 percent advance. The Hang SengChina Enterprises Index climbed to 11,105.70, more than 20 percent above a March 20 closing low, while trading volume in Shanghai surged. Standard & Poor’s 500 Index futures lost 0.1 percent and the yield on 10-year U.S. notes climbed one basis point after the equity benchmark retreated from a record. Oil in New York and London dropped at least 0.4 percent. Soybean and corn futures jumped at least 0.9 percent.

U.S. reports on services activity and pending home sales are due before the Fed meets to discuss monetary policy, while Goldman Sachs Group Inc. said last week rising yields may spur a retreat in global stocks and bonds over the next three months. Chinese industrial-company profits jumped the most last month since September, data yesterday showed. Israel resumed its offensive against Hamas militants in the Gaza Stripafter a lull in fighting, while the U.S. said it has photos of Russia shelling into Ukraine.

“Sentiment has turned in favor of growth and cheap valuations in the Chinese market,” said Khiem Do, who helps oversee about $60 billion as the Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Ltd. The shares have “been lagging for a long time so they’re catching up with world markets. The Fed has communicated to the market that the first Fed-fund rate hike will be more like next year than this year, so should they change their mind then that would be quite negative.”

Asian Valuations

The Hang Seng China Enterprises Index climbed 1 percent today, after it jumped 5.3 percent last week, the most since March. The Hang Seng Index advanced 1 percent while the Shanghai (SHCOMP) Composite Index surged 2.1 percent, with the number of transactions about 170 percent above the 30-day average for the time of day.

The gauge of Chinese shares in Hong Kong trades at 7.7 times estimated earnings, compared with 13.6 times for MSCI’s Asia-Pacific measure. The S&P 500 is at 16.6 times.

Profits at industrial companies in Asia’s largest economy increased by 17.9 percent in June from a year earlier, after gaining 8.9 percent in May, data from China’s statistics bureau yesterday showed. It was the biggest gain since an 18.4 percent climb in September of last year and came after a private gauge of Chinese manufacturing advanced to an 18-month high, data last week showed.

Price Gap

The Hang Seng China AH Premium Index climbed 1.7 percent to 91.65, signaling a narrowing gap between the Hong Kong and mainland share prices of companies with dual listings. A link between the Shanghai and Hong Kong bourses will start from Oct. 13, the National Business Daily said, citing an unidentified brokerage.

The S&P/ASX 200 Index (AS51) was little changed in Sydney, while South Korea’s Kospi index climbed 0.6 percent. Markets in Indonesia, Malaysia and Singapore are closed for holidays.

Goldman Sachs cut its rating on stocks to neutral, the equivalent of hold, for the next three months, according to a quarterly research report from its portfolio strategy group July 25. The bank also lowered corporate credit to underweight and predicted U.S. government bond yields will increase.

U.S. Notes

Amazon.com Inc. drove U.S. stock declines July 25, sliding almost 10 percent after reporting the widest loss since 2012, distracting investors from an earnings season where 79 percent of S&P 500 members have exceeded analysts’ profit estimates. The benchmark U.S. equity gauge fell 0.5 percent to 1,978.34 July 25, declining for the first time in four days.

Yields on 10-year Treasuries climbed to 2.48 percent after slipping four basis points July 25. Australian bonds due in a decade paid 3.42 percent, after rates rose six basis points, or 0.06 percentage point, last week.

The gap between rates on 30-year Treasury notes and five-year debt narrowed to the least since 2009 last week as uncertainty over whether the U.S. economic recovery is on a strong footing vied with concern that the Fed may raise rates earlier than previously anticipated.

The Treasury will auction $29 billion in two-year securities today, $35 billion in five-year debt tomorrow and $29 billion in seven-year bonds July 30. It will also sell $15 billion in two-year floating-rate notes July 30.

Employers probably added 231,000 workers to nonfarm payrolls in July, after a 288,000 increase in June, according to 69 economists’ estimates compiled by Bloomberg before Aug. 1 reports.

Copper, Lead

The Markit Economics composite and service industries purchasing managers’ indexes for the U.S. are due today, along with data on pending home sales. An update on second-quarter gross domestic product is scheduled for July 30, with the FOMC meeting July 29-30.

Copper for delivery in three months on the London Metal Exchange fell as much as 0.5 percent to $7,090 a ton. Freeport-McMoRan Inc. said July 25 that it will resume full operations in Indonesia at its Grasberg copper operation, the world’s third-largest, and plans to restart exports next month after resolving a dispute with the government.

Lead on the LME rose as much as 0.8 percent to $2,284 a ton, heading for the highest close this year. The metal gained 3.7 percent last week, the biggest advance since January. Aluminum was up 0.7 percent to $2,010.50 a ton. - Bloomberg

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Copper Holds Losses as Freeport Set to Resume Indonesia Exports

                   Copper dropped for a second day after Freeport-McMoRan Inc. received approval from Indonesia to resume exports from its Grasberg mine.

The metal for delivery in three months fell as much as 0.5 percent to $7,090 a metric ton on the London Metal Exchange and traded at $7,123 at 10:36 a.m. in Hong Kong. Copper has lost 3.2 percent since the start of the year.

Freeport plans to resume copper concentrate exports from Indonesia in August, the company said in a statement Friday. The company had reduced operations by about half at the Grasberg mine, the third largest in the world, after the government introduced restrictions in January to encourage local raw-material processing.

“The exports of concentrates will now be priced in and that’s why prices are down,” Tetsu Emori, a fund manager at Astmax Asset Management Inc., said by phone from Tokyo. “We don’t know yet how much of an impact it will have on actual production on metals.”

Copper futures for September in New York was little changed to $3.242 a pound, while the contract for the same month in Shanghai dropped 0.5 percent to 50,570 yuan ($8,173) a ton.

On the LME, aluminum, zinc and lead climbed, while nickel fell. Tin hadn’t traded.

Tin shipments from Indonesia, the largest exporter, are set to contract the most in seven months in July, Agung Nugroho, corporate secretary at PT Timah, said July 23.

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Gold / Silver / Copper futures - weekly outlook: July 28 - August 1

                          Gold futures rallied 1% on Friday, as investors continued to monitor geopolitical concerns in the Gaza strip and Ukraine.

On the Comex division of the New York Mercantile Exchange, goldfor August delivery jumped 0.97%, or $12.50, on Friday to end the week at $1,303.30 a troy ounce.

Gold prices were likely to find support at $1,287.50, the low from July 24 and resistance at $1,316.80, the high from July 22.

Gold’s safe haven appeal was boosted on Friday as investors continued to closely watch an intensifying geopolitical crisis between Moscow and the West over the situation in Ukraine.

The Pentagon said Friday that Russia has escalated the violence in Ukraine and may be set to provide more sophisticated weapons to pro-Russian rebels in eastern Ukraine.

Meanwhile, fighting between Israel and Hamas showed little sign of abating, despite ongoing efforts by the U.S. to reach a ceasefire.

Gold is often seen as a haven investment in times of geopolitical uncertainty.

Despite Friday’s strong gains, Comex gold prices declined 0.46%, or $6.10 an ounce, on the week, the second consecutive weekly loss.

Gold tumbled to a five-week low of $1,287.50 on Thursday after upbeat U.S. economic data added to speculation that the Federal Reserve will hike interest rates sooner than expected.

The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to hit an eight-year low of 284,000.

On Friday, the Census Bureau said that U.S. durable goods orders rose 0.7% in June, beating expectations for a 0.5% gain. Core durable goods orders, which are stripped of transportation items, grew 0.8% in June, beating expectations for a 0.6% gain.

The data primed market expectations for the Fed to wind down its bond-buying stimulus program around October and raise interest rates in 2015, which would reduce the need for gold for use as a hedge against loose monetary policy.

In the week ahead, investors will be looking ahead to Wednesday’s monetary policy announcement by the Federal Reserve. The U.S. will also release the monthly non-farm payrolls report for July later in the week as well as a preliminary estimate on second quarter economic growth.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in gold futures in the week ending July 22.

Net longs totaled 136,120 contracts, up 3.1% from net longs of 131,971 in the preceding week.

Also on the Comex, silver for September delivery climbed 1.08%, or 22.1 cents, on Friday to settle the week at $20.63 a troy ounce, as investors returned to the market to seek cheap valuations after prices dropped to a five-week low on Thursday.

On the week, the September silver futures contract lost 1.19%, or 25.0 cents, the second straight weekly decline.

Data from the CFTC showed that net silver longs totaled 46,221 contracts as of last week, down slightly from net longs of 46,795 contracts in the preceding week.

Elsewhere in metals trading, copper for September delivery rallied to a daily high of $3.279 a pound on Friday, the most since July 13, before turning lower to end at $3.240 by close of trade, down 0.8%, or 2.6 cents.

On the week, Comex copper prices rose 1.72%, or 5.6 cents a pound as growing optimism over the health of the U.S. economy and speculation demand from top consumer China will increase in the near-term boosted prices.

According to the CFTC, net copper longs totaled 44,107 contracts as of last week, down from net longs of 48,994 contracts in the preceding week. -investing.com

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Copper Remains Near Recent Highs While Gold Continues To Bottom

                  Gold is trading at 1292.60 adding $1.80 but remaining weak as the US dollar maintains its strength. Silver added 83 points to reach 20.498 and platinum is flat at 1472.10. Gold futures fell to the lowest in five weeks in New York as the outlook for an improving global economy reduced demand for a haven. 

A preliminary China Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics rose to an 18-month high. U.S. jobless claims fell to the lowest since February 2006 last week, a government report today showed. The Standard & Poor’s 500 Index of stocks closed at a record yesterday. The decline extends losses this month for bullion after unrest in Ukraine and the Middle East helped prices rebound 10 percent in the first half of 2014. Goldman Sachs Group Inc. reiterated a call for gold to drop further by year-end with an accelerating U.S. recovery, even as the bank raised its long-term forecast on the metal.

Prices for the yellow metal fell 1 percent to below $1,300 an ounce as the dollar and stock markets rose on surprisingly low weekly jobless claims and robust corporate earnings out of the United States. 

Data from Europe showed the services sector in the 18-member euro zone performing better than any forecast from 39 economists in a Reuter’s poll. All that diverted investor attention from the clashes in Gaza between Hamas and Israel, as well as the tensions in the Crimean region after the sanctions on Russia and the downing of a Malaysian passenger jet, that sent bullion rallying last week.

Goldman repeated a forecast for gold to drop to $1,050 by the end of 2014, analysts wrote in a report dated yesterday. The bank said it raised its long-term forecast 13 percent to $1,200 in 2014-dollar terms “to make it more in line with our marginal-cost support level.”

Data from the China Gold Association yesterday showed consumption in the country, which surpassed India as the largest user last year, fell 19 percent in the first half of 2014.

Copper gave up a few points this morning as traders booked profits after Thursday’s rally on Chinese data. Copper is trading at 3.255. Copper dropped for the first time this week as investors viewed a rally to the highest price since July 14 as excessive amid rising global supplies.

Copper is down 2.8 percent this year, the most among the six main metals on the LME. Global supply will exceed demand by 353,000 tons in 2014 and by 492,000 tons in 2015, according to Goldman Sachs Group Inc. Goldman cut its 12-month estimate for copper to $6,200 a ton from $6,600 due to rising output and exposure to a weak property market in China, the biggest user. Copper futures rose the most in three weeks as a gauge of manufacturing climbed to an 18-month high in China, the world’s top consumer of industrial metals.

China’s factory measure from HSBC Holdings Plc and Markit Economics showed a preliminary July reading of 52, compared with the 51 median estimates of analysts surveyed. A level above 50 indicates expansion. Copper inventories monitored by the London Metal Exchange extended a slump to the lowest since August 2008. - Fxempire

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Gold Is Tumbling While Copper Is Climbing

                        Gold is trading below $1300 and headed down this morning. Gold gave up $6.70 in the Asian session to trade at 1298.00 after touching a low of $1295.78. Silver followed alone declining by 152 points to trade at 20.843 and platinum touched 1479.65 duplicating gold’s movements. Asian equity markets rose on following upbeat economic data from China and as the region’s earnings season got under way. On Wednesday gold was holding its ground above $1,300 as violence deepened in the Middle East over the Gaza strip and as holdings in the top bullion-backed fund rose on safe-haven bids. Tensions remained high between Russia and the West over Ukraine.  Kiev said two of its fighter jets were shot down over the rebel-held territory in eastern Ukraine on Wednesday, and the missiles that brought them down might have been fired from Russia.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6 tonnes to 805.44 tonnes on Wednesday – a second straight day of increase. Gaza fighting raged on Wednesday, displacing thousands more Palestinians in the battered territory as U.S. Secretary of State John Kerry said efforts to secure a truce between Israel and Hamas had made some progress. Gold prices are expected to move in a range to down for the day over its fading safe haven appeal and poor physical demand.

China’s HSBC Flash Manufacturing Purchasing Managers’ Index (PMI) increased by 1.3 points to 52-mark in July from 50.7-level in the last month.

The US Dollar Index traded on a positive note and gained around 0.1 percent yesterday on the back of weak market sentiments in later part of the trade which lead to increase in demand for the low yielding currency. However, sharp upside in the currency was capped due to estimates of rise in interest rates in near future and investors will keep a close eye on US Federal Reserve meeting to be on held 29th-30th July 2014. The currency touched an intraday high of 80.92 and closed at same levels on Wednesday. The US dollar is trading at 80.90 in the Asian session.

Base metals on traded lower yesterday on speculation that the rally in the prices of Zinc, Lead and Aluminium were excessive in absence of enough fundamental demand. Also, investors were conscious ahead of manufacturing data from the US, Euro Zone and China due today. However, declining trend in LME inventories along with recovery in markets sentiments restricted sharp downside. Metals reversed their declines to gain after the release of Chinese PMI data, with copper climbing to trade at 3.231 up by 25 points and continuing to rise.  - fxempire

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Copper jumps 1% after China PMI hits 18-month high

                      Copper futures rallied to a more than one-week high on Thursday, as investors cheered better than expected manufacturing data out of China, the world’s largest consumer of the red metal.

On the Comex division of the New York Mercantile Exchange, copper for September delivery rose to a session high of $3.253 a pound, the most since July 16, before trimming gains to last trade at $3.248 during European morning hours, up 1.27%, or 4.1 cents.

Copper ended Wednesday’s session down 0.03%, or 0.1 cents, to settle at $3.207. Futures were likely to find support at $3.192, the low from July 23 and resistance at $3.255 a pound, the high from July 16.

Data released earlier showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to an 18-month high of 52.0 in July from a final reading of 50.7 in June. Analysts had expected the index to rise to 51.0 this month.

Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for August delivery shed 0.43%, or $5.60, to trade at $1,299.10 a troy ounce, while silver for September delivery dipped 0.41%, or 8.7 cents, to trade at $20.90 an ounce.

Later in the day, the U.S. was to produce data on unemployment claims, manufacturing activity and new home sales, amid ongoing speculation over when the Federal Reserve may start to raise interest rates. - investing.com

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Stand-up traders fined for bending LME rules

                                The London Metal Exchange (LME) has fined almost all of the dealers buying and selling copper on its open-outcry floor a total of £13,750 and suspended one for standing up during a session.

Seven traders were fined £1,250 each for breaking a rule that states dealers must remain seated at all times while dealing on the LME floor, known as the ring, the bourse said in a notice dated last Friday.

Two traders were each given £2,500 fines because it was their second offence in three to six months, according to the notice.

There were 11 LME floor-trading companies when the rule was broken on July 11.

The LME, which accounts for more than 80% of industrial-metals futures trading, operates Europe’s last open-outcry floor. Ten companies are entitled to trade in the ring, where dealers sit on red leather sofas in a circle measuring 6m in diameter.

On the New York Mercantile Exchange, traders are in a pit with steps that allow them to see above each other. "The LME operates a ring, not a pit," Kathy Alys, an LME spokeswoman, said.

"Dealers that stand create an unfair advantage and might obstruct the view of other dealers and LME pricing committee members."

LME open outcry dates back to the 1800s, when merchants drew a circle in sawdust to trade tin and copper. While traders no longer wear top hats and tails, they still must comply with a formal dress code and rules, including buttoned shirts and a chewing gum ban. Breaches bring fines and penalty points, the accumulation of which results in temporary suspension.

The seven traders committing first offences were also given 20 disciplinary points apiece.

The two repeat offenders each received 40 points, and one of them was suspended because he had accumulated 60 points within three months.

Trading in the ring might be "unmanageable" and monitoring of trades more difficult when traders stood up, said Paddy Crabbe, a consultant and author of the Metals Trading Handbook. - bdlive

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BMO: Average Copper Prices To Slide To $2.90/Lb. In 2016

                                
                              BMO looks for average copper prices to fall back to around $2.90 a pound in 2016, before recovering to longer-term levels around $3. The red metal has pulled back from recent highs above $3.25. BMO says those highs were driven by China’s Purchasing Managers Index and gross domestic product data, but could would be sustained only if lingering concerns such as China’s property sector improved. “Thus far, housing starts remain down in H1/14, with June recently reported at minus 9% year-on-year,” BMO says. “Further, while new yuan loans increased 26% in June following a ‘mini stimulus’ program easing credit restrictions for certain sectors, BMO Research understands that the vast majority of new loans were short term in nature and government-led.” On the supply side, mining companies reporting second-quarter and first-half copper output figures thus far have either met or beat BMO expectations, with guidance either flat or increased for this year, the firm continues. “This continues to point to strong supply growth near term, and the risk that, like 2013, this year’s ‘supply disruption’ could be lower than the historical average of 5% and consensus supply revised upward,” BMO says. - Kitco

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Copper falls to 2-week low ahead of Yellen testimony

                      Copper futures fell to a two-week low on Tuesday, as markets were jittery ahead of highly anticipated comments by Federal Reserve Chair Janet Yellen later in the day.

On the Comex division of the New York Mercantile Exchange, copper for September delivery hit a session low of $3.224 a pound, the weakest level since July 2, before trimming losses to last trade at $3.248 during European morning hours, down 0.04%, or 0.1 cents.

Copper prices ended Monday’s session down 0.61%, or 2.0 cents, to settle at $3.249 a pound.

Futures were likely to find support at $3.183 a pound, the low from July 2 and resistance at $3.294 a pound, the high from July 14.

Market players remained cautious before Fed Chair Yellen testifies before Congress at 10:00 a.m. Eastern, amid speculation over when the central bank will start raising interest rates.

Before that, retail sales for June and the New York Fed Empire manufacturing index for July will be released.

In the minutes of the Fed's June policy meeting released last week, the Fed predicted an October close to its bond-buying stimulus program but did not hint at a timetable as to when interest rates may begin to rise afterwards.

Copper traders also looked ahead to a raft of Chinese economic data later this week, including reports on second quarter gross domestic product, industrial production and retail sales.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.

Elsewhere on the Comex, gold for August delivery inched up 0.41%, or $5.40, to trade at $1,312.10 a troy ounce, while silver for September delivery advanced 0.52%, or 10.9 cents, to trade at $21.02 an ounce. - investing.com

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Gold / Silver / Copper futures - weekly outlook: July 14 - 18

          Gold futures ended Friday’s session little changed near a 16-week high, as demand for the precious metal remained supported amid renewed concerns over the health of Portugal’s banking sector and amid signs that U.S. interest rates will remain on hold for an extended period of time.

Gold hit $1,346.80 an ounce on Thursday, the most since March 19, before settling at $1,339.20, up 1.13%, or $14.90.On the Comex division of the New York Mercantile Exchange, goldfor August delivery slipped 0.13%, or $1.80, on Friday to end the week at $1,321.30 a troy ounce.

Gold prices were likely to find support at $1,312.10, the low from July 7 and resistance at $1,358.00, the high from March 19.

On the week, Comex gold advanced 1.2%, or $16.10 an ounce, the sixth consecutive weekly gain.

Gold prices rallied more than 1% on Thursday as concerns over the fiscal stability of Portugal’s Banco Espirito Santo (LISBON:BES) fuelled demand for safe haven assets, amid fears over the risk of contagion.

Concerns eased slightly on Friday after Portugal’s central bank said it was satisfied that the lender is able to fulfill its capital requirements.

Meanwhile, minutes of the Federal Reserve's June policy meeting released on Wednesday suggested that the central bank is in no rush to raise interest rates.

According to the minutes, officials agreed to end the central bank’s asset purchase program in October, however, little new information was revealed on when the bank could start to hike rates.

In the week ahead, investors will be watching testimony on monetary policy by Fed Chair Janet Yellen, as well as key data on June retail sales.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in gold futures in the week ending July 8.

Net longs totaled 144,272 contracts, up 5.1% from net longs of 136,929 in the preceding week.

Also on the Comex, silver for September delivery shed 0.22%, or 4.7 cents, on Friday to settle the week at $21.46 a troy ounce, as traders locked in profits after a sharp rally the day before.

Prices hit $21.63 an ounce on Thursday, the most since March 16, before settling at $21.50, up 2.09%, or 44.0 cents.

The September silver futures contract rose 1.21%, or 26.0 cents, on the week, the sixth straight weekly gain.

Data from the CFTC showed that net silver longs totaled 44,517 contracts as of last week, compared to net longs of 36,697 contracts in the preceding week.

Elsewhere in metals trading, copper for September delivery eased up 0.06%, or 0.2 cents, on Friday to settle at $3.269 a pound by close of trade.

On the week, Comex copper prices inched down 0.03%, or 0.1 cents a pound.

Copper traders looked ahead to a raft of Chinese economic data this week, including reports on second quarter gross domestic product, industrial production and retail sales.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

According to the CFTC, net copper longs totaled 38,367 contracts as of last week, compared to net longs of 24,767 contracts in the preceding week. - investing.com

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Copper rallies to 11-week high on China stimulus hopes

          Copper prices extended last week’s gains to hit an 11-week high on Monday, as disappointing housing data from China fuelled speculation policymakers will unveil fresh stimulus measures to stabilize the economy.

On the Comex division of the New York Mercantile Exchange, copper for July delivery advanced 0.79%, or 2.5 cents, to trade at $3.172 a pound during European morning hours.
Copper rose to a session high of $3.184 a pound earlier, the most since March 7. Prices eased up 0.08%, or 0.2 cents, on Friday to settle at $3.147 a pound.

Futures were likely to find support at $3.127 a pound, the low from May 16 and resistance at $3.219 a pound, the high from March 7.

Data released over the weekend showed that house prices in China rose 6.7% in April from a year earlier, slowing from a 7.7% increase in the previous month.

The disappointing data added to hopes that China’s government will introduce fresh stimulus to combat recent signs of a slowdown in the nation’s economy.

The next slice of Chinese economic data to come out will be the HSBC preliminary purchasing managers' index for May, due on Thursday.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for June delivery rose 0.53%, or $6.80, to trade at $1,300.20 a troy ounce, while silver for July delivery jumped 1.24%, or 23.9 cents, to trade at $19.56 an ounce.

Heightened tensions between Russia and Ukraine continued to support demand for safe haven assets.

The conflict between pro-Russian separatists and Ukrainian forces continued on over the weekend, stoking fears that the crisis will further develop and drag the U.S. deeper into the standoff.

U.S. and European officials warned over the weekend that Russia would have to face additional sanctions if Moscow disrupts the upcoming presidential elections in Ukraine on May 25. - investing.com

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Gold / Silver / Copper futures - weekly outlook: April 21 - 25

           Gold prices ended the week sharply lower on Thursday, falling below the $1,300 level as indications that the U.S. economic recovery is progressing dampened safe haven demand for the precious metal.

Gold came under pressure after upbeat U.S. data on manufacturing and employment pointed to underlying strength in the economy.On the Comex division of the New York Mercantile Exchange, gold futures for June delivery ended Thursday’s session at $1,294.90 an ounce. The precious metal ended the week down 2.34%. The Comex was closed for Good Friday.

The Labor Department reported the number of people filing for unemployment benefits edged up to 304,000, below analysts’ forecasts and not far from the six-and-a-half year low of 300,000 touched the previous week.

A separate report showed that manufacturing activity in the Philadelphia region strengthened more than forecast in April.

Meanwhile, concerns over the crisis in eastern Ukraine eased on Thursday after Russia, Ukraine, the U.S. and the European Union said an agreement on steps to "de-escalate" the crisis had been reached.

Gold, seen as a safe haven investment, usually benefits from economic and geopolitical turmoil.

Concerns over weakening demand from top buyer China also weighed on gold prices.

Prices for the precious metal posted the largest one day decline since December 19 on Tuesday after the World Gold Council said that Chinese gold demand is likely to remain flat this year, as a result of the country's economic slowdown and constrained credit markets.

Elsewhere in metals trading, silver futures for May delivery rose 0.2% to $19.64 a troy ounce on the Comex, trimming the week’s losses to 1.59%.

Copper futures for May delivery edged up to $3.049 a pound at the close on Thursday, to end the holiday shortened week with gains of 0.24%. - investing.com

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Copper declines as China mini-stimulus package disappoints

Copper prices declined on Thursday, after China unveiled a mini-stimulus package, disappointing market expectations for more drastic measures.

On the Comex division of the New York Mercantile Exchange,copper for May delivery traded at $3.025 a pound during European morning hours, down 0.67%, or 2.0 cents.

Copper fell to a session low of $3.015 a pound earlier, the least since March 28. Futures tacked on 0.36%, or 1.1 cents, on Wednesday to settle at $3.045 a pound.

Futures were likely to find support at $2.990 a pound, the low from March 28 and resistance at $3.074 a pound, the high from April 2.

China's State Council said Wednesday that it will increase spending on railways and housing, as policymakers attempt to boost slowing growth in Asia’s largest economy.

However, the announcement disappointed market participants, who had expected more stimulus in the form of looser monetary policy, such as a cut in bank reserve requirements.

Mixed data on China’s services sector also weighed. HSBC’s China services Purchasing Managers’ Index rose to 51.9 last month from 51.0 in February, but the official nonmanufacturing PMI fell to 54.5 in March from 55.0 in the previous month.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for June delivery shed 0.35%, or $4.50, to trade at $1,286.30 a troy ounce, while silver for May delivery lost 0.96%, or 19.2 cents, to trade at $19.85 an ounce.

Gold and silver prices weakened ahead of the release of upcoming U.S. economic data and a policy meeting by the European Central Bank later in the day.

The U.S. is to publish the weekly report on initial jobless claims as well as a report on service sector activity. Investors were also beginning to turn their attention to Friday’s highly-anticipated nonfarm payrolls data.

Traders will also be awaiting the outcome of the ECB’s policy meeting later Thursday, amid growing concerns over the threat of deflation in the region. - investing.com

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