Iron Ore Hold Ground As Gold Gives Up Gains

By Glenn Dyer | More Articles by Glenn Dyer

Gold futures on Wednesday started the new month with a loss, stretching their fall to a fourth straight session.

US economic data Wednesday came in better than expected, but analysts said they don’t include much of the impact from the COVID-19 pandemic.

The mixed to out of date data on factory activity and jobs didn’t convince traders who ended up focusing on the worsening rate of infections and death in the US.

As a result Comex June gold fell $US5.20, or 0.3%, to settle at $US1,591.40 an ounce.

Comex May silver meanwhile, settled 17.2 cents, or 1.2%, lower at $US13.984 an ounce.

Based on the most-active contracts, silver lost about 14% for the month and saw a quarterly decline of 21%.

Among other metals, Comex May copper shed 2.4% to $2.1745 a pound – it was down 20% for the quarter, a more telling fall so far as economic activity is concerned, especially in China.

Meanwhile, iron ore prices managed to stay above $US80 a tonne on Wednesday despite weakening from a day earlier on news of a softer Chinese steel products market.

The price of 62% Fe iron ore fines delivered to northern China eased 83 cents or 1% to $US82.49.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

View more articles by Glenn Dyer →