Copper and gold prices most vulnerable to further falls on China

Analysis of the price sensitivity of over 100 assets to changes in the Chinese economy by Barclays has revealed that gold and perhaps surprisingly given recent sharp falls, copper also are the two commodities most vulnerable to further price falls in the event of a further sharp slowdown in China. Both metals are closely linked to the strength of the Chinese economy, in the case of copper through growth in the manufacturing and construction sectors and for gold, demand from households as a store of value. The research found that given the two metals sensitivity to Chinese economic activity, both metals are particularly vulnerable to further price falls if Chinese growth hits the buffers.

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