Commodities Trading Outlook: Gold, silver and copper futures

Copper futures slid for a third day, touching the weakest level in a week, after downbeat data from the worlds biggest consumers China and the US added to concerns of slowing demand, at a time when global mine supplies are increasing. Meanwhile, gold futures erased the biggest one-day advance in more than three weeks, as markets in China, the largest global consumer remained closed due to a public holiday, while assets in the SPDR Gold Trust, the biggest bullion-backed ETF, were reduced to the weakest level in almost a month on Friday. Silver also fell.

On the Comex division of the New York Mercantile Exchange, copper futures for settlement in May fell by 0.14% to trade at $3.018 a pound by 11:33 GMT. Prices shifted in a daily range between $3.022 and $2.998 a pound, the weakest since March 28. The metal plunged 0.6 percent last week, capping the first loss in three weeks.

Today, markets in China, the worlds biggest consumer of the red metal, remained closed due to a public holiday.

Last week, two gauges of manufacturing activity in China, came in bellow market expectations and added to signs of weakness in the economy.

“The U.S. payroll data fueled concern that demand will slow after disappointing Chinese economic data earlier last week,” said Tetsu Emori, a senior fund manager at Astmax Asset Management Inc. in Tokyo, cited by Bloomberg. “The weaker outlook for demand would damp market sentiment at a time when supplies are seen rising.”

According to data compiled by the metals researcher CRU, the global surplus of copper may reach 140 000 tons in 2014, almost four times larger than previously estimated as demand in the biggest consumer, China, slows.

Last week, a separate report by the International Copper Study Group showed an even bigger projected global surplus of 400 000 tons as demand lags behind the output growth.

Meanwhile, on the Comex division of the New York Mercantile Exchange, gold futures for settlement in June slid 0.3% to trade at $ 1 299.60 an ounce by 11:34 GMT. Prices shifted in a daily range between $1 304.40 an ounce and $1 298.30 an ounce. The precious metal advanced 1.5% on Friday, the most since March 12, to settle the week 0.6 percent higher, snapping two straight 5-day periods of declines.

Elsewhere on the Comex, silver futures for May delivery dropped by 0.6 percent to trade at $19.830 an ounce by 11:35 GMT. The precious metal, has lost 7% in March, registering a second monthly decline since the start of the year. Platinum futures for July delivery fell by 1.05 percent to trade at $1 435.80 an ounce. Palladium futures for June delivery traded at $783.10 an ounce, losing 1 percent. The metal has risen 8% this year on concern more sanctions by the US and the EU on Russia and a strike at South African mines may reduce supplies. The two countries are the biggest producers of palladium.