Commodity Blog

Gold advanced today as data from the United States did not support outlook for reduction of monetary stimulus by the Federal Reserve. The manufacturing Purchasing Managers’ Index unexpectedly fell from 50.7 percent in April to 49.0 percent in May. Such news weakened the dollar, boosting gold price. Spot price for gold rose $1.18 (0.08 percent) to $1,412.53 per troy ounce as of 2:35 GMT today.

Copper futures advanced on concerns about supply as Freeport-McMoRan Copper & Gold Inc. said that accidents in its Grasberg mine in Indonesia (the second biggest mine in the world) may result in halting work for three months. Additionally, China’s Purchasing Mangers’ Index rose from 50.6 to 50.8 last month instead of falling, according to the official data. Such data suggest that demand may increase. Prospects for lower production and higher consumption boosted copper prices. Contract for delivery of copper in July advanced $0.005 (0.15 percent) to $3.3355 per pound on COMEX.

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