Copper Steady on Rising Inventories

BASE METALS

Copper: Copper prices steadied as the recent dip in prices sparked buying interest, but the metal is still on track for its sharpest weekly decline since October as rising inventories have eased supply concerns. Benchmark three-month copper on the LME was flat at $12,900. Copper is set to lose 1.8% this week and is down 11.2% from a record high of $14,527.50 on January 29.

Available stocks in LME-registered warehouses rose to 183,275 tons, their highest since May following deliveries to South Korea and New Orleans. Meanwhile, inventories at the SHFE climbed for the ninth-straight week to their highest level since April at 248,911 tons after months of waning supply. Reports have been circulating that the Chinese State Reserves Bureau is releasing copper into warehouses to ease recent price spikes. COMEX stocks are at a record 531,999 tons. The cash LME copper contract was trading at a discount of $85 a ton to the three-month forward on Thursday, suggesting little demand for the metal in the near term.

China announced plans to boost stockpiles of copper, though several traders have cautioned against over-interpreting the remarks. Currently, there are no details on the planned size of the reserves, scale of purchases, or timeline. China’s Lunar New Year holiday in mid-February will also bring industrial activity to a standstill in the country which consumes more than half of global copper production estimated at around 26 million tons this year.

Zinc: Zinc nudged up 0.1% to $3,306.

Aluminum: Aluminum jumped 1.2% to $3,063. Consumer buying interest has emerged on dips below the $3,000 mark.

Tin: Tin dropped 0.2% to $46,390.

Lead: Lead lost 0.3% to $1,949.

Nickel: Nickel slipped 0.4% to $17,020. Goldman Sachs and Macquarie lifted their average 2026 nickel price forecasts above $17,000 on Tuesday, citing tighter supply from top producer Indonesia.

PRECIOUS METALS

Gold: Gold edged higher as renewed attention on US–Iran tensions provided safe-haven support, offsetting lingering caution following last week’s sharp selloff. Volatility in the space remains elevated, with the CME raising margin requirements for gold and silver futures for a third time in two weeks in an effort to temper risk and speculative positioning.

While the start of US–Iran negotiations in Oman offered some near-term stabilization in sentiment, underlying demand signals remain mixed. Chinese buying has stayed subdued ahead of the Lunar New Year.

Lower trading volumes could leave prices more susceptible to short-term volatility. Structural support for gold, however, remains intact as central banks continue to diversify reserves away from the dollar and increase bullion purchases, a trend expected to provide a steady underlying bid through 2026.

The January jobs report is now scheduled for release on February 11 following delays tied to the partial government shutdown. While data collection has been completed, the revised timing may temporarily compress market reactions around labor indicators. Markets have now priced in a June rate cut in response to Thursday’s JOLTS data, though near-term easing expectations support the view that the Fed will hold on rates.

Silver: Silver futures are down nearly 3 % to $74.56. Chinese demand remains weak ahead of the Lunar New Year. There are reports of a large short position being held by a Chinese investor, which has dampened sentiment during Asian trading. Silver is likely to continue to face extreme volatility in both directions in the near term. The silver, platinum and palladium markets are small relative to gold, making them vulnerable to speculative inflows. This dynamic has presented the risk that prices have become detached from physical demand conditions. Additionally, record high prices could be poised to limit industrial demand.

Platinum: Platinum is down 1.6% to $2,041.

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