Metals were rattled for a second week by Donald Trump’s trade war, despite solid import data from China – gold though slid to its lowest level in nearly a year as investors failed to see its traditional role as a ’safe haven’ in volatile times.
A surge in Chinese exports – especially steel and aluminium – and higher shipments to the US ahead of Trump’s tariffs ended up more worrying for many traders in commodities.
Soybean futures in the US again came under pressure but prices for beans from other countries such as Brazil strengthened.
Copper led metals lower to slightly weaker. Iron ore prices were steady to a touch weaker as well.
A 11.6% fall in Chinese imports of iron ore in June from May’s near record levels didn’t help either. The Metal Bulletin 62% Fe Iron Ore Index eased 2 US cents on Friday to $64.04 a tonne and up 20 cents over the week.
The Aussie dollar fell under the 74 US cent level during the week, but recovered to close around 74.20 on Saturday, around the same level as a week earlier. The US dollar was a touch stronger over the week.
Comex gold prices fell Friday to their lowest settlement in nearly a year, with the precious metal finding no safe-haven support in the US-China trade dispute, as the greenback gained for the week.
Comex August gold lost $US5.40, or 0.4%, to settle at $US1,241.20 an ounce, marking the lowest settlement for a most-active contract since July 17, 2017, according to US data group, FactSet.
The contract fell 1.2% over the week, the fourth such loss in five weeks.
Comex September silver fell 16.2 cents, or 1%, to $US15.815 an ounce, the lowest finish fo 2018 to date for a most-active contract. Silver futures fell 1.6% for the week.
Comex September copper settled nearly flat at $US2.776 a pound, but logged a weekly loss of about 1.7%, a bit less than in the previous couple of weeks.
In London LME copper saw a fifth weekly loss as trade tensions between the United States and China continued and aluminium hit a three-month low.
President Trump and Vladimir Putin are due to meet in Helsinki on tonight, our time and aluminium investors are looking for any hint that US sanctions on Rusal, the world’s second-biggest aluminium producer (and Russian-owned), will be eased or lifted.
Three-month copper on the London Metal Exchange closed up 0.2% at $US6,238 a tonne, but was down 1% for the week. The metal has fallen 15% in five weeks of losses.
LME aluminium lost half a per cent at $US2,031 a tonne, having hit its lowest since early April at $US2,021.50.
China’s aluminium exports exceeded half a million tonnes for the second time ever in June, while steel exports hit an 11-month high, defying US tariffs.
Zinc closed down 0.1% at $US2,578, lead ended down 0.6% at $US2,202, tin closed up 0.8% at $US19,795 while nickel ended down 1.6% at $US13,970.
