Copper prices fell on Friday after a host of weak factory data from China, the world’s largest metals consumer, but losses were contained by the prospects of more stimulus measures by the government.

Copper’s three month futures fell 0.3% at the London Metals Exchange to $10109 per tonne. Prices are now down 9% from the May 20 high at $11104. 

Earlier Chinese data showed the manufacturing PMI fell unexpectedly in May as the real estate crisis continues to bite into growth. 

China’s manufacturing PMI fell to 49.5 in May from 50.4 in April, entering into shrinkage territory.

It’s likely that such numbers will prompt the government to extend its current suite of stimulus measures to underpin the struggling sector.

Copper July futures at the Shanghai Futures Exchange fell by 1.6% today to 82,500 yuan per tonne. 

Despite the recent losses, copper is still up 2% this month, and 19% this year overall. 

As for other metals, aluminum prices rose 0.3% at the London Metals Exchange to $2711 a tonne, while nickel rose 0.1% to $20075, as lead added 1% to $2300, while tin rose 1.2% to $33,250. Zinc fell 1% to $3041. 

Otherwise, the dollar index fell 0.2% as of 15:40 GMT to 104.5, with a session-high at 104.9, and a low at 104.3.

Copper July futures fell 0.9% in American trade as of 15:36 GMT to $4.61 a pound. 

Bitcoin rose on Friday on track for the second profit in a row, while about to trade above $70,000 once more amid a strong risk appetite in the market.

US 10-year treasury yields declined recently following forecast-matching US personal spending data for April. 

The world’s most valuable cryptocurrency is about to mark the fourth monthly profit this year amid a constant cash influx flow into US bitcoin exchange funds in May. 

The Price 

Bitcoin rose by 1%, or $680 at Bitstamp to $69,010, with a session-low at $67,865. 

Bitcoin rose 1.1% on Thursday, the first profit in three sessions as US treasury yields tapered off. 

Crypto Market Value 

The market value of cryptocurrencies rose by over $10 billion today to $2.690 trillion as both bitcoin and ethereum gained ground.

US Yields 

US 10-year treasury yields fell by 1% on track for the second losing session in a row away from four-week highs at 4.638%. 

Risk sentiment improved in the market after US personal spending data for April, which more or less matched estimates. 

The data likely points to slower inflationary pressures on the Federal Reserve, and could boost the odds of multiple Fed rate cuts this year. 

According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in September rose to 53% following the data, and the odds of such a cut in November rose to 66%.

Monthly Trades 

Bitcoin is up 14% so far in May on track for the fourth monthly profit this year. 

Last week, the SEC approved ethereum exchange traded funds, including funds managed by Blackrock, in turn boosting sentiment. 

Bitcoin Exchange Funds

Since May 13, bitcoin exchange funds have received a constant positive stream of cash as institutional investors grow more interested. 

The famous Blackrock fund has become the world’s largest bitcoin exchange fund, with bitcoin assets amounting to $19.48 billion. 

Silver prices rose on Friday after a two-day hiatus, on track for the largest monthly profit since 2020 on strong retail demand. 

The white metal is benefitting from slower US 10-year treasury yields, as investors now await crucial US personal spending data, which will help determine the likely path ahead for monetary policies.

Prices

Silver prices rose 0.45% today to $31.32 an ounce, with a session-low at $30.78.

Prices lost 2.5% on Thursday, the second loss in a row on profit-taking off 12-year highs. 

Monthly Trades

Silver prices are up an excellent 19% so far in May, on track for the largest monthly profit since 2020.

The white metal marked a 12-year peak on May 20 at $32.52 as most non-yielding assets rallied back then, 

Such gains were underpinned by the weaker dollar and US treasury yields following forecast-missing inflation and growth data. 

Retail Sales

As retailers seek assets to guard against potential risks as global central banks change their policies to a more accommodative direction, it’s clear that silver is becoming an excellent under-valued choice. 

The recent silver surge tipped off many retailers that silver remains far from its true value compared to gold, which is trading at record highs. 

Gold hit a record high of $2450 an ounce on April 20, while silver is very far away from its record high of $49.78 scaled in April 2011, in turn triggering strong demand on the white silver for its potential hidden value.  

Historically, silver had usually taken wider and more aggressive movement arcs upside and down compared to gold, although recent times were an exception. Now retailers are paying more attention to the missing silver value. 

US Yields 

US 10-year treasury yields fell 0.3% today away from four-week highs at 4.638%, underpinning non-yielding assets such as gold. 

US Rates

The market odds of a Fed 0.25% rate cut in September stand at 51%, and a 64% for a November rate cut.

According to the Fedwatch tool, investors now expect a single Fed interest rate cut in 2024. 

US Personal Spending Data

Investors await important US personal spending data, which the Fed relies on heavily to measure the path of inflation. 

Gold prices inched up in European trade on Friday on track for the second straight profit, moving away from three-week lows and heading for the fourth monthly profit in a row.

The gains are underpinned by the lower US 10-year treasury yields ahead of crucial US personal spending data, the Fed’s favorite inflation gauge. 

Such data will provide fresh pricing for the odds of Fed rate cuts this year.

Prices 

Gold prices rose 0.2% today to $2347 an ounce, with a session-low at $2337.

Prices rose 0.25% on Thursday away from three-week lows at $2322. 

Monthly Trades

Gold is down 2.7% so far in May on track for the fourth monthly profit in a row.

The precious metal marked a record high on May 20 at $2450 an ounce as major investment funds buy up the metal.

The gains were also boosted by the weaker dollar and US treasury yields following forecast-missing US growth and inflation data, which boosted the odds of two Fed rate cuts this year.

US Yields 

US 10-year treasury yields fell 0.3% today away from four-week highs at 4.638%, underpinning non-yielding assets such as gold. 

US Rates

The market odds of a Fed 0.25% rate cut in September stand at 51%, and a 64% for a November rate cut.

According to the Fedwatch tool, investors now expect a single Fed interest rate cut in 2024. 

US Personal Spending Data

Investors await important US personal spending data, which the Fed relies on heavily to measure the path of inflation. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat yesterday at 532.21 tonnes, the lowest since May 10.