IGI Logo

Precious and industrial metals faced a decline, driven by a strengthening U.S. dollar and concerns about global economic weakness. Silver dipped to its lowest in a month, pressured by a robust dollar and weak Chinese stimulus measures. Copper hit a two-month low amid underwhelming Chinese economic data and a tepid debt package. Gold fell to nearly a two-month low as reduced demand for safe-haven assets and strong dollar gains weighed on the market. Meanwhile, WTI crude oil and platinum also experienced significant declines due to bearish demand outlooks and dollar strength. Across markets, U.S. policy expectations and Chinese economic challenges have clouded the outlook for key commodities.

Key Highlights

* Silver prices drop to $30.30, a one-month low.

* Copper futures fall below $4.20, lowest in two months.

* Gold slides to $2,600, nearing a two-month low.

* WTI crude oil trades near $68, pressured by weak demand.

* Platinum declines to $960 amid strong U.S. dollar impact.

Silver extended its losses to hit $30.30 per ounce on Tuesday, the lowest in a month, as the U.S. dollar strengthened. Gold followed suit, sliding to $2,600 per ounce, marking a near two-month low, while copper prices fell below $4.20 per pound, the lowest in almost two months. Platinum also reached a one-month low at $960 per troy ounce, while crude oil held near $68 per barrel.

The robust U.S. dollar, buoyed by expectations of pro-growth policies under President Trump’s re-election, added significant pressure on commodities. Silver, reliant on industrial demand, faced further challenges as Chinese solar panel companies cut production due to potential U.S. tariffs. Copper's decline was driven by weak Chinese loan data and underwhelming consumer and producer price figures. Meanwhile, the failure of China’s 10 trillion yuan debt package to offer direct stimulus weighed on industrial metals. Gold's drop reflected reduced safe-haven demand amid expectations of delayed Federal Reserve easing.

China’s 10 trillion yuan debt package aimed at local government financing fell short of providing the hoped-for economic boost, affecting market sentiment. Additionally, the World Gold Council highlighted increased gold ETF holdings in India, while OPEC's upcoming report is expected to outline 2025 oil market balances. Policy uncertainties surrounding Trump’s administration, particularly potential tariffs and reduced emissions targets, have added further unpredictability to the metals market.

Finally

Commodities faced broad declines as a strong U.S. dollar and weak Chinese data pressured markets. Traders should watch for OPEC insights and U.S. policy developments.

Above views are of the author and not of the website kindly read disclaimer