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Copper Falls, but Heads to Monthly Gain; Gold Loses Value

May 30, 2014 at 17:40 by Vladimir Vyun

Copper prices fell today, but the metal was still heading for monthly gains. Traders still count on economic growth in the United States and China to support demand for the industrial metal. It is true that economic reports from the USA were not particularly encouraging lately (including today’s data), but economists believe that the economic weakness was a consequence of the unusually harsh winter and does not reflect a long-term trend. As a result of such thinking, the outlook for industrial metals remains fairly positive. Nevertheless, July futures for delivery of copper fell $0.0185 (0.59 percent) to $3.1260 per pound as of 17:14 GMT on COMEX today.

The same optimism that may yet help copper is hurting gold. The precious metal was attempting to rally previously due to the conflict between Russia and Ukraine, but now risk premium is fading away as the situation in Eastern Europe calms. Last week’s Commitments of Traders report showed that the number of long positions was falling, though it still remains far above the number of short positions. August contract for gold lost $12.4 (0.99 percent) to $1,244.7 per troy ounce.

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