Producers of metals and other raw materials fell on worries about global demand, while prices for precious and base metals rose. The Materials Select Sector SPDR Fund eased 0.4% lower.
China's refined market for copper looks loose as industrial and property market demand is being deferred due to high prices, while refined supply has stayed strong, JPMorgan said in a note. "A temporary correction in copper prices could be healthy to kick start Chinese demand and lay the groundwork for another eventual push even higher," JPM said.
Hedge funds have been increasing their bullish bets on precious metals, SP Angel analysts said in a note. Market focus is turning to Friday's U.S. Personal Consumption Expenditure numbers, which are expected to provide some clarity on Federal Reserve interest-rate cut plans, SP Angel said. High interest rates typically drive down demand for non-interest-bearing bullion.
Write to Patrick Sullivan at patrick.sullivan@wsj.com
(END) Dow Jones Newswires
05-28-24 1703ET
