Trading Activity In Gold, Silver Drop For Second Straight Month As Prices Rise

Trading Activity In Gold, Silver Drop For Second Straight Month As Prices Rise.

For the second consecutive month, trading activity in gold and silver was subdued in last month as prices continued to rise, according to the latest trade data from the London Bullion Market Association. In its average daily clearing statistics report released Thursday, the LBMA said that gold prices averaged $1,234 per ounce in February, a rise of 3.5% from January. However, the daily average volume of ounces traded in the month fell by 8.3% to 18.8 million. The average value of transfers dropped 5.1% to $23.2 billion. The average number of daily transfers fell by 7.6% to 2,838, with clearers settling on average 6,613 ounces per transfer. Outperforming gold, the LBMA said that the silver price averaged $17.87 an ounce, up 6.3% from January. However, the volume of silver ounces transferred daily dropped 17.3% to 171.6 million. The corresponding value transferred rose fell by 12.1% to $3.07 billion, its highest level since February 2014. The number of daily transfers increased by 4.2% to 1,007, with the clearers settling on average 170,411 ounces per transfer, a drop of 21% compared to the previous month.

How Will the Earthquake affect Copper Mines in Chile? SMM Reports.

The Hong Kong Observatory reported a 5.1-magnitude earthquake struck Chile's central region. SMM reckons the country’s copper mines will barely take a hit. Most of the country’s copper mines are located in the southern part of the country. Meanwhile, the magnitude is of low intensity. Freeport-McMoRan Inc.’s Cerro Verde copper mine will restart production on Friday after workers decided to end a nearly 3-week strike by vote, wenhua.com reported. The strike has caused copper output at Cerro Verde copper mine to fall by about 50%. About 40,000 tone’s per month of copper output was affected by the strike. But the company said the strike did not give any substantive effect on output. Chilean government said Thursday the country’s copper output in February posted a 16.7% decline on both year-on-year and month-on-month basis to 376,948 tone’s, wenhua.com reported. The strike at Escondida copper mine, which is the largest copper mine in the world, affected the country’s copper production most significantly in February.

Oil dips after 3-day rally, but support seen above $50 per barrel.

Oil prices eased on Friday as traders took profits following three days of straight gains on the expectation that an OPEC-led crude supply cut that was initially supposed to only last for the first half of the year would be extended. Traders said there was a growing sense that the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil production giant Russia would agree to continue their production cut deal seeking to drive prices higher. OPEC and non-OPEC producers including Russia agreed late last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year in order to rein in a global supply overhang and prop up prices. Despite this, there remains doubt that the output cuts will go deep enough for the world's bloated markets to tighten soon and significantly lift prices, especially as other producers that are not part of the agreement could step in to fill the supply gap.

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