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Gold, silver lose shine to copper

The resilience of copper prices in the face renewed concerns of global growth may be a signal that investors are hoping for better times ahead.

BT Online Bureau | July 20, 2012 | Updated 16:01 IST

Copper, which is considered the bellwether for global economy, has fared better than gold and silver globally so far this year.

According to marketwatch.com, Copper futures HGU2 have climbed about 2.7 per cent on the Comex division of the New York Mercantile Exchange since the end of last year as compared to 0.9 per cent rise in gold futures GCQ2 and a fall of about 2.5 per cent in silver futures SIU2.

The resilience of copper prices in the face renewed concerns of global growth may be a signal that investors are hoping for better times ahead.

On the other hand, gold and silver prices have been muted as the US Federal Reserve has not yet announced any fresh quantitative easing, keeping gold and silver bulls at bay.

Despite the slow recovery of the US economy, its housing sector has shown signs of being bottoming out. On the other hand, many analysts hope that the Chinese economy would pick up in the second half of the year with its housing sector too bottoming out.  
Gold demand has been muted so far this year in India, putting pressure on its price.

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