Today in MetalCrawler; the Chinese economy continues to disappoint, gold breaks a key support level and nobody agrees about when copper prices might recover.
Chinese Economy May Be Stimulus-Proof
In many ways China doesn’t really look like an economy growing at even 7%, with exports plunging in March, power generation dropping 3.7%, the biggest fall since 2008, and a host of other indicators pointing to sluggish growth.
Reuters Clyde Russell writes that increased economic stimulus spending by Beijing may not be able to do much to help the Chinese economy this year.
Gold slid below $1,200 an ounce on Thursday as the dollar pared losses after upbeat US factory data and demand for physical metal stayed weak, though uncertainty over the timing of a Federal Reserve rate increase underpinned prices.
The dollar index, strength in which tends to weigh on gold, recovered from lows against a basket of currencies after a survey showed factory activity in the mid-Atlantic region accelerated in April.
Check our MetalMiner Indx for the latest prices.
World Copper Conference: No Agreement on Price Recovery
“The world is on the edge of a new metals age, with copper at its center,” Jean-Sebastien Jacques, chief executive of Rio Tinto Group’s copper and coal unit, said in a speech Tuesday at the annual World Copper Conference in Santiago, Chile, the world’s largest copper producer.
Not everyone sees a bright future for the beleaguered metal, however. Goldman Sachs Group analyst Max Layton said that with Chinese steel demand tailing off in the past six months, copper will be “the next shoe to drop.”