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Gold Remains Weak, Copper Climbs on China’s Stimulus

March 28, 2014 at 23:13 by Vladimir Vyun

Gold closed flat today but ended the week with losses and reached the lowest level in six weeks. The metal continued to experience weakness as the outlook for continuous stimulus reduction in the United States persisted. US macroeconomic reports were mixed this week, but nothing was particularly worrisome and traders retained confidence in the US economy. June futures for gold delivery closed flat at $1,294.30 per troy ounce on COMEX today after falling to $1,286.10, the lowest level since February 12. Prices were down 3.1 percent this week.

Copper on the other hand found strength in speculations that China will stimulate its cooling economy and ended the week with the biggest gain in six months. China’s Premier Li Keqiang was speaking this week, saying that the government is ready to take necessary measures in case the economy slows too much. He stated:

The overall performance in the economy so far this year is relatively stable and we saw some positive changes, but we cannot neglect the increasing downward pressure and difficulties.

Development of infrastructure is among the planned measures for boosting the economic performance and this promises significant demand for copper, which is used in construction and industry. May futures for delivery of the metal gained as much as 1.6 percent to close at $3.0415 per pound and prices were up 3.1 percent this week.

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