Written Commentary
BASE METALS
Copper: Copper prices bounced higher as Chinese markets opened following the Lunar New Year holiday, as firmer demand in China supported the bid. Benchmark three-month copper on the LME gained 1.8% to $13,100 to a one-week high after falling 0.7% on Monday. Sentiment among traders is that Friday’s tariff ruling in the US will largely benefit China, supporting demand prospects in the country, highlighted by a rally in the Chinese stock market. Elsewhere, physical demand in China has picked up, with the Yangshan copper premium gaining 60% on Tuesday to $53 a ton.
Copper inventories in LME-approved warehouses rose by 1,350 tons overnight to 243,175 tons, the highest level since March 2025, and are now up roughly 71% year-to-date. The steady accumulation points to subdued physical offtake and a lack of urgency from buyers. Evidence of inventory withdrawal will likely offer support to prices following weeks of rising inventories.
Zinc: Zinc gained 0.9% to $3,383.
Aluminum: Aluminum rose 0.4% to $3,101.
Tin: Tin advanced 2.5% to $48,890.
Lead: Lead added 0.1% to $1,953.
Nickel: Nickel climbed 2.9% to $17,780 after an Indonesian official said the government was considering revoking the environmental permit of a company after a landslide hit a mine waste zone at its nickel processing hub.
PRECIOUS METALS
Gold: Gold prices slipped as a firmer dollar pressured the metal and traders took profits following yesterday’s rally. Markets remain in wait-and-see mode on US trade policy after Friday’s Supreme Court ruling against President Trump’s tariff measures. The administration has since imposed a blanket 15% levy on imports, while existing trade agreements with the EU and India remain in flux after both sides paused implementation or negotiations. President Trump also warned that countries retreating from recent trade deals could face higher duties under alternative trade statutes, keeping uncertainty elevated.
Geopolitical risks persist, with the US and Iran set to hold a third round of nuclear talks in Geneva on Thursday.
From a macro perspective, recent data continues to support a patient Federal Reserve stance. Headline and core PCE both rose 0.4% in December, lifting core inflation to 3.0% year-over-year, while Q4 GDP slowed to 1.4% from 4.4% in Q3 amid weaker government spending and exports. The combination of moderating growth and sticky services inflation reduces the urgency for near-term easing.
Structural support for gold remains intact, as central banks continue diversifying reserves and adding to bullion holdings, reinforcing a steady underlying bid into 2026.
Silver: Silver futures are down .4% to $86.25
Platinum: Platinum is down 1% to $2,133.
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