Base metals experienced a broad rally, led by copper, as markets await crucial US economic data that could shape the Federal Reserve’s monetary policy. ANZ noted that further interest-rate cuts are viewed as a potential boost for the sector. The market largely disregarded the previous session’s downturn, pivoting instead to signals of tightening supply across several metals. Demand for copper remains robust, buoyed by strong import figures into China. Anticipation is also building around increased investment in artificial intelligence infrastructure in the US, which is expected to further stimulate copper demand.
Gold prices edged higher, nearing record levels at $US4341 an ounce, as investors sought the safety of the precious metal amid escalating geopolitical tensions in Venezuela. Sentiment was further bolstered by expectations of imminent interest-rate cuts by central banks globally. Gold is often seen as a hedge against economic uncertainty and currency devaluation, making it an attractive option during times of geopolitical instability.
Platinum prices surged to a 17-year peak, fuelled by constrained supply and heightened trading activity linked to a newly introduced Chinese futures contract. The surge highlights the ongoing supply-demand imbalance in the platinum market. Such increases are indicative of a broader trend within the metals market, where supply concerns and macroeconomic factors are combining to drive prices upward.
