Gold prices traded near record highs following softer-than-expected US inflation data, increasing expectations that the Federal Reserve will cut interest rates. Markets are currently pricing in approximately a 25 per cent chance of a rate cut in January and a near-certain move by April. Lower bond yields and ongoing geopolitical tensions further bolstered support for the precious metal.
Platinum rose for a sixth consecutive session, driven by signs of tightness in the London market. One-month borrowing costs for platinum surged to around 14 per cent. ANZ noted that optimism surrounding stronger Chinese demand, following the launch of a new contract on the Guangzhou Futures Exchange, has also underpinned platinum prices.
Elsewhere in the metals market, copper ended the session higher as investors reacted positively to the weaker inflation data, which increases the likelihood of further easing by the Federal Reserve. Nickel prices surged following reports that Indonesia is considering a sharp cut to nickel ore production in 2026.
Lithium prices also showed strength after China moved to revoke 27 expired mining permits in a key lithium region. ANZ stated that while this action has no immediate impact on output, it signals tighter oversight of mining licences and has positively influenced sentiment across the lithium market.
