1127 GMT – Gold futures see an increase amid choppy trade conditions. They have climbed by 0.7%, reaching $3,056.50 per troy ounce after fluctuating between a peak of $3,084.40/oz and a trough of $2,985/oz during the same period. This volatility can largely be attributed to traders and investment funds being compelled to sell off assets to cover margins required elsewhere in the financial markets, according to remarks from SP Angel analysts. Despite ongoing global economic unrest prompting substantial shifts across various sectors, the U.S. government remains steadfast with its stance on tariffs. Typically, when faced with a broader market downturn, gold prices tend to dip; however, they swiftly recover once investor sentiment pivots away from equities towards safer bets like gold itself. Analysts at SP Angel predict that as stakeholders reassess where best to allocate capital amidst geopolitical uncertainties, gold stands out as the premier asset for storing wealth securely.
joseph.hoppe@wsj.com
)
Metal Prices Are Inconsistent with Copper’s Increases Seeming Brief
0946 GMT – The prices of base metals are showing mixed trends, with LME three-month copper rising 0.2% to stand at $8,710.50 per metric ton and LME three-month aluminum falling 1.4% to reach $2,355 a ton. Although copper has regained some ground, it remains over 10% lower compared to last week due to President Trump’s imposition of new tariffs causing traders to offload their holdings. According to an analysis from Citi analysts, investors ought to steer clear of high-risk assets such as base metals for the time being. They predict that physical demand could decline significantly once these tariffs come into effect, which would further influence financial positions. The report suggests maintaining a bearish stance towards metals until either the US Federal Reserve lowers interest rates, Trump eliminates retaliatory tariffs, or copper falls below multi-year support levels around $7,500—a ton—whichever occurs earliest. In addition, they advise using any short-lived price increases as chances to unload inventory.
joseph.hoppe@wsj.com
)
Gold Futures Steady; Market Still Shows High volatility
0812 GMT – Gold futures remain relatively stable amidst fluctuating trades. They’re currently steady at $3,035.80 per troy ounce, despite ranging between highs of $3,084.40/oz and lows of $2,985/oz throughout Monday’s session. Traditionally seen as a haven for assets, gold isn’t entirely shielded from broader market declines due to concerns about worldwide economic growth, according to an analysis note from ING analysts. Metals experienced a downturn last Friday because President Trump’s ongoing trade conflict heightened anxieties regarding future demand and expansion prospects. Since reaching an all-time peak of $3,201.60/oz on Wednesday, gold prices have declined sharply; this drop reflects investors selling off the precious metal along with other investment categories to offset losses in different areas, notes ING. Nonetheless, ING suggests that although gold may experience a temporary dip, increasing tensions over trade measures will likely sustain the appeal of safe-havens like gold going forward.
joseph.hoppe@wsj.com
)
