Written Commentary
PRECIOUS METALS
Gold: Gold prices extended record gains on safe-haven flows as the World Economic Forum gets underway in Switzerland. President Trump said the US would note use force to acquire Greenland and was seeking negotiations on the acquisition of the territory, repeating his claim that only the US is capable of defending it. Trump warned that eight NATO members, namely Denmark, Norway, Sweden, Finland, Germany, the UK, France and the Netherlands, could face a 10% tariff beginning February 1, which could rise to 25% on June 1 unless a deal for Greenland is reached. The Supreme Court ruling is also set to hear arguments over the president’s effort to fire Fed Governor Lisa Cook back in August. Inflation data out Thursday will be important for interest rate expectations following December’s payrolls data, which reflected a stable labor market. Money markets currently price in a rate cut in July and are favorable of an earlier move in June
Silver: Silver futures slipped 0.6%.
Platinum: Platinum is 2% higher at $2,509.
BASE METALS
Copper: Copper prices are higher as investors shrug off sluggish demand signals from consumers. Benchmark three-month copper on the LME rose 1.10% to $12,894. LME copper has surged by 30% over the past six months, touching a record peak of $13,407 last week, driven by speculative buying on the back of worries that mine disruptions will create shortages. Copper has remained range-bound near record highs, despite sluggish spot demand and SHFE move on Tuesday to hike margin ratios and widen daily price limits for some metals following last year’s rally. The exchange’s measures were seen to stabilize prices and led to the session’s earlier loss on Tuesday. The Yangshan premium, a key indicator of Chinese copper consumption, was at $26 a ton on Tuesday, the lowest since late July, 2024. Record higher prices warned are likely starting to weigh on demand by squeezing corporate profit margins for large metal consumers. Prices have also felt pressure after the US opted to defer tariffs on critical minerals, while China stepped up its crackdown on high-frequency trading, which plays a significant role in commodity markets.
Zinc: Zinc added 0.54%.
Aluminum: Aluminum rose 1.01%.
Tin: Tin is up 5.54% to $52,150. Recent talk of a government clampdown on illegal tin mining in Indonesia have spurred supply worries. Tin has also gained support from market bets of rapid growth and demand for tin on the back of the artificial intelligence boom. However, Tom Langston at the International Tin Association said that the supply-demand metrics have not shifted, noting that fund interest for LME tin was at record levels.
Lead: Lead gained 0.35%.
Nickel: Nickel climbed 2.48%.
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