In yesterday's trading session, green dominated the metal price chart. Precious metals are being strongly affected by geopolitical factors while most base metals prices recovered thanks to positive US economic data and concerns about tight supply.
In the precious metals market, silver prices closed up 1.48% at $34.58 an ounce - the highest level in the past five months. In contrast, platinum prices fell slightly by 0.3% to $1,023 an ounce, reflecting the divergence in investment flows.
The demand for safe haven precious metals continues to increase due to the tension in the Middle East. New developments in Gaza after the ceasefire have raised concerns about regional security. At the same time, the possibility of increasing global trade protectionism under the White House's policies has also boosted the flow of money seeking safe haven assets.
The factor holding back the rally is the expectation of the US Federal Reserve’s interest rate decision. The market predicts that the Fed will maintain the interest rate at 4.5%, helping high-yield bonds continue to attract capital flows, while reducing the attractiveness of precious metals - a group of non-yielding assets.
For the base metals group, COMEX copper prices increased by 1.16% to $5/ounce (equivalent to $11,059/ton), approaching the historical peak set in late May 2024. Iron ore prices also recovered slightly by 0.12% to $102.16/ton.
Copper markets are being hit by a wave of speculation over the possibility of new tariffs from the US. At the same time, political instability in the Democratic Republic of Congo - one of the world's leading copper exporters - has also contributed to supply concerns, as the M23 armed group in the east of the country has withdrawn from the peace talks.
In addition, a series of US economic data released last night showed many positive signals. Notably, the industrial production index in February increased by 0.7% and the number of new housing projects reached 1.501 million, both exceeding market expectations. These indicators reflect increased demand for base metals in the US, contributing to offsetting the decline from China and supporting the recovery of the global iron ore market.
Oil prices ended a two-session winning streak after reports that US President Donald Trump and Russian President Vladimir Putin discussed measures to ease tensions in Ukraine.
At the end of the session, Brent oil price decreased by 0.7% to 70.56 USD/barrel, while WTI oil decreased by 1% to 66.9 USD/barrel.
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