New | Fizzling Chinese economy and global uncertainty sparks copper fall and gains in gold

Copper dropped and gold gained as weak Chinese trade data undermined confidence in the global economy.

Chinese exports unexpectedly shrank the most since February, while imports also declined. The figures signalled slower growth in the world’s second-largest economy just as the US prepares to raise interest rates, boosting gold’s appeal as a haven.

“The Chinese data was disappointing to the industrial metals and pushing the asset protection side of precious metals,” George Gero, a managing director at RBC Wealth Management, said in a telephone interview.

Copper is the worst performer among the six major base metals traded on the London Metal Exchange, trading little changed this year, as uncertainty in China, the world’s biggest metal consumer, damped prospects of more demand growth ahead. Chinese customs data released Thursday showed copper imports in September slid to the lowest since February 2015.

Copper futures fell 2.3 per cent to US$4,704 aper tonne ($2.13 a pound and headed for the biggest loss since June.