Written Commentary
PRECIOUS METALS
Gold: Gold prices edged higher after rebounding on Thursday to hit a record high yet again as markets digested resilient US data and easing geopolitical risks. Revised GDP and firm household spending confirmed the economy remains on solid footing, limiting the case for imminent policy easing, inflation data reinforced the view of gradual rather than reaccelerating price pressures. Headline and core PCE both rose 0.2% on the month, in line with expectations, signaling that disinflation progress has not stalled even as activity stays firm.
President Trump said he had reached a deal with NATO Secretary-General Mark Rutte over Greenland and would not be imposing tariffs on several European allies. Details of the framework are not yet known, but markets took a sigh of breath from the deescalation, as focus shifts back to economic data and the outlook for the Fed ahead of next week’s meeting. Markets are currently only priced for one rate cut in 2026 after starting out the year priced for two; markets are priced for a September rate cut, July was previously fully priced in but on top of recent data, the case for holding policy has become stronger.
Central bank buying and a broader move away from the dollar have remained supportive of gold prices.
Silver: Silver futures are up 3.5% to 99.85.
Platinum: Platinum is 5.2% higher at $2,711.
BASE METALS
Copper: Copper prices firmed to end the week with recent support for prices coming after Capstone Copper said that a workers’ strike had forced a production halt at its Mantoverde mine in Chile. Benchmark three-month copper on the LME gained 1.30% to $12,921. The strike began after the mine’s largest workers’ union and Capstone failed to reach a collective bargaining agreement. The company on Thursday said a takeover of the mine’s desalination plant began last Sunday, leading to disruptions. The mine was forecast to produce between 29,000 and 32,000 metric tons of copper cathodes in 2025. Meanwhile, miner Freeport-McMoRan said on Thursday that it expected about 85% of production at its flagship Grasberg mine, the world’s second-biggest copper mine, to be back online by the second half of this year.
On the demand side, strong consumption linked to the global transition toward renewable energy and a surge in shipments to the US ahead of potential tariffs underpinned prices. Meanwhile, Chinese smelters have ramped up exports through deliveries to LME warehouses this year, as higher global prices and ongoing property sector strains in China encouraged outbound shipments. The market is easing from tight to more balanced conditions, reducing the urgency behind the rally. Still, copper should remain supported by ongoing supply disruptions and intense demand in 2026, which will likely put the metal into a supply deficit close to 300,000 tons.
Zinc: Zinc rose 0.87%.
Aluminum: Aluminum added 0.40%.
Tin: Tin rose 3.71% to $53,800. 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 was up 0.30%.
Nickel: Nickel increased 3.94% to $18,705.
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