Copper prices rise as China's metal imports rise in July

Copper prices were volatile on Monday as investors weighed data showing China continues to hoard copper despite a slowdown in production. Gold was steady ahead of key U.S. inflation data due this week. Copper futures rose 0.1% to $3.555 an ounce after falling as much as 0.2%. China’s total imports grew more slowly than expected in July, while customs data showed the pace of the country’s copper purchases remained unchanged. Imports of copper and copper products totaled 463,693.8 tonnes in July, compared with 424,280.03 tonnes a year earlier, Reuters reported. The data contradicts trends showing a sharp decline in China’s manufacturing activity. But China recorded a record trade surplus in July, supported by strong exports as overseas demand for manufactured goods remained strong. Copper prices have been falling since last week, when weak industrial activity data from around the world raised concerns about a slowdown in demand. China’s factory activity unexpectedly contracted in July. But that could change in the coming months as many parts of the country emerge from COVID-19 lockdowns. Stronger-than-expected U.S. employment data also supported the dollar, weighing on most metals prices. The data raised investors’ expectations that the Federal Reserve will raise interest rates next month. All eyes now turn to U.S. consumer price index data due Wednesday for fresh clues on monetary policy. A stronger-than-expected data could force the Fed to aggressively raise lending rates — a move that would hurt metals prices. Among other precious metals, gold prices held steady despite the dollar strengthening amid rising global recession concerns. The yellow metal benefited from rising safe-haven demand amid rising tensions between the U.S. and China last week. Spot gold was largely unchanged around $1,774, while gold futures were steady just below $1,800. Uncertainty over the extent of U.S. interest rate hikes is expected to support demand for gold in the coming days. Platinum futures fell 0.7%, while silver lost 0.2%.