Copper Rallies Amid China Stimulus, Gold prices Down on US-México trade

Copper is rallying amid speculation of a China stimulus plan. Gold up as equities are rallying and risk appetitie.
Mauricio Carrillo
Copper Rallies Amid China Stimulus, Gold prices Down on US-México trade
Copper Rallies Amid China Stimulus, Gold prices Down on US-México trade

Gold is trading down on Tuesday as investors are willing to take more risks following the US-Mexico trade resolution.

On the other hand, copper is rallying for the second day amid speculations that China will increase its stimulus in metal-infrastructure plans in the near term. Traders are buying Copper as China is the largest consumer of copper in the world.

Silver, palladium, and platinum are trading sideways.

Metals report for Tuesday, June 11

Gold falls for the second day in a row and it is trading now at 1-week lows around 1,320. Gold is under pressure amid risk appetite and rallying equities.

Silver is consolidating lows near to 14.65 on Tuesday after losing over 2% on Monday. It seems like the 20-day moving average is supporting the pair.

Copper, on the other hand, is rallying for the second day in a row amid speculations that China will pump more money to the economy in the next months in the way of economic stimulus. Copper is trading at 2-week highs.

Palladium is consolidating levels following the rally performed on Monday. The first day of the week it traded as high as 1,394.40, its highest level since April 30, now, XPD/USD is trading at 1,387.80, 0.40% positive on the day.

Platinum remains inside the range it has been trading in the last four trading sessions. The unit is moving between 800.00 and 810.00, contained by the 20-day moving average at the top side of the range.

US-Mexico deal and a possible rate cut fuel risk appetite

Markets are cheering the tariff and immigration agreement between the United States and Mexico reached the weekend, and stocks and riskier assets are showing it.

Besides, speculations that the Federal Reserve is ready to cut its interest rate has increased the promise of low-cost money for investments. It is fueling equities and a global market rally is pushing metals down.

China stimulus push copper up

Copper prices are trading higher for the second day in a row. Investors are welcoming speculations that the Chinese government is ready to implement a stimulus plan that will pump money into metal-related infrastructures.

According to a report published by Reuters, China would allow local governments to use bonds as financing for investment projects. Those plans would be metal-related initiatives that would fuel copper purchases by China.

Remember that China is the biggest Copper consumer in the world.

Copper is extending gains for the second day in a row. The metal jumping to 2.6970, its highest level since May 28.

Currently, it is adding 1.5% gains in the day as it is pricing at 2.6944. The metal is consolidating gains above the 20-day moving average at 2.6770, and it seems ready to test the 2.7015 level.

Technical indicators suggest more gains in the short term. Above the 2.7015, the unit will face resistances at the 200-day moving average at 2.7595 and the 50-day moving average at 2.7900 area. Above, 2.8355 is the level to watch.

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