Metal Markets Diverge as Gold Recovers and Copper Gains Support from Supply Concerns.
🥇 Gold ended the October 5–9 week near $4,194/oz, gaining approximately 1.3% after hitting a two-month low. Silver also recovered to around $60.8/oz but remained more volatile than gold.
📉 Gold's recovery was supported by easing US Treasury yields, lower oil prices, and bargain hunting following the recent correction. However, a strong US dollar and expectations of further Fed tightening continued to limit the potential for a sustained rally.
🏦 Investment demand remained a key source of support. According to the World Gold Council, global gold ETFs attracted approximately $10 billion in September, pushing total holdings to a record 4,256 tonnes. These inflows suggest that accumulation demand remains resilient despite short-term volatility.
🏭 LME copper finished the week near $14,541 per tonne, gaining approximately 2%. A strike at Chile's Centinela mine raised supply concerns, while Chinese import demand improved following the Golden Week holiday. Declining LME inventories and Yangshan copper premiums reaching a four-year high further highlighted regional supply tightness.
🔩 Other industrial metals showed mixed performance. Tin and zinc recovered in the final trading session, while aluminium and nickel continued to face pressure from production capacity and demand uncertainties.
🔎 Markets enter the new week with a clear divergence between precious metals, which remain sensitive to the US dollar and Treasury yields, and industrial metals, which are more directly influenced by physical supply and demand. US CPI data on October 14 and developments in Chile's copper supply will be key factors to watch.
#MetalsMarket $XAUt $XAG $XCU
🥇 Gold ended the October 5–9 week near $4,194/oz, gaining approximately 1.3% after hitting a two-month low. Silver also recovered to around $60.8/oz but remained more volatile than gold.
📉 Gold's recovery was supported by easing US Treasury yields, lower oil prices, and bargain hunting following the recent correction. However, a strong US dollar and expectations of further Fed tightening continued to limit the potential for a sustained rally.
🏦 Investment demand remained a key source of support. According to the World Gold Council, global gold ETFs attracted approximately $10 billion in September, pushing total holdings to a record 4,256 tonnes. These inflows suggest that accumulation demand remains resilient despite short-term volatility.
🏭 LME copper finished the week near $14,541 per tonne, gaining approximately 2%. A strike at Chile's Centinela mine raised supply concerns, while Chinese import demand improved following the Golden Week holiday. Declining LME inventories and Yangshan copper premiums reaching a four-year high further highlighted regional supply tightness.
🔩 Other industrial metals showed mixed performance. Tin and zinc recovered in the final trading session, while aluminium and nickel continued to face pressure from production capacity and demand uncertainties.
🔎 Markets enter the new week with a clear divergence between precious metals, which remain sensitive to the US dollar and Treasury yields, and industrial metals, which are more directly influenced by physical supply and demand. US CPI data on October 14 and developments in Chile's copper supply will be key factors to watch.
#MetalsMarket $XAUt $XAG $XCU