Silver and gold dropped on Monday in early Asia, but copper revealed a bounce ahead of other releases and a China production survey. Ahead are making PMIs from Japan, seen at 51.4 in July, and China - with the Caixin/Markit China closing for July seen at 48.3 in the flash approximation. Gold for August delivery on the Comex division of the New York Mercantile Exchange dropped 0.10% to $1,093.80 a troy ounce.
Additionally on the Comex, silver futures for September delivery still 0.20% to $14.730 a troy ounce by close of commerce. Elsewhere in metals trading, copper for September delivery gained 0.19% to $2.357 a pound. Marketplace players are observing the PMI amid worry that additional sudden falls in the stock market in China could propagate to different portions of the economy, triggering concerns that the demand for the industrial metal of the Asian nation will fall.
China is the world's largest copper consumer, last year, accounting for nearly 40% of world consumption. Gold futures inched on Friday, but posted the worst monthly performance in more than a couple of years as on-going expectations the Federal Reserve will raise interest rates at its September policy assembly counted, in July. In July, gold prices lost $79.50, or 6.72%, the largest weekly drop since June 2013. Futures dropped to a five-and-a-half year low of $1,072.30 on July 24.
The central bank gave no clear sign of the time of the following rate increase, but left itself room to act as early as September, mentioning "strong" gains in the job market and "added" development in the home sector. The Commerce Department said on Thursday that the market grew 2.3% in the second quarter, missing expectations for increase of 2.6%, but enhancing from increase of 0.6% in the preceding quarter. Anticipations of higher borrowing rates is considered bearish for gold, as the precious metal fights to compete with return-producing strengths when rates are rising.
In the week ahead, investors will likely be focusing on Friday's non-farm payrolls report for July, for fresh signs on the power of the market as well as the time of a U.S. rate increase. On Monday, the U.K. is to print its manufacturing index. The U.S. is to release data on personal income and expense, while the Institute of Supply Management is to release data on manufacturing activity.