Daily metals

What's Moving Markets?Global equities rallied as investors reacted to softer-than-expected US inflation data. Core CPI rose (2.6%) at the slowest YoY pace since early 2021, reinforcing expectations that the Fed could continue cutting interest rates next year. Markets are pricing about a 25% chance of a cut in Jan and are almost fully expecting one by Apr. Rising geopolitical tensions pushed the energy sector higher. The prospect of further rate cuts boosted the precious- and industrial-metals markets. Yields on 10-year US Treasuries fell by 4bp to 4.12%, while the USD index was steady at 98.4.Precious metals ended mixed; gold and silver weakened on profit-taking while the PGMs gained. Platinum extended its steep rally to a 17-year high near $2,000, rising more than 3% during Asian trading amid heavy activity in the recently launched Chinese futures contract, lifting its YTD gain to 121% — not far behind silver, which is holding steady near record highs. The London market continues to show signs of tightening as banks store metal in the US to insure against the risk of tariffs. The annualised cost of borrowing platinum for one month is at around 14%, a historically high level. Together with gold, these semi-precious metals, supported by tight supply and robust demand, have benefited greatly in 2025 from rising demand for hard assets in a world marked by fragmentation, fiscal strain, tariff risks tightening supply outside the US, and geopolitical uncertainty. Latest IMF data shows that the Central Bank of Jordan reduced its gold reserves by almost 2t in Nov. Total gold holdings now stand at 71t, just 1t lower than at the start of the year. Palladium soared by almost 4% on expectations of stronger demand and tight supply. The European Commission has proposed easing its 2035 combustion-engine ban by reducing the emissions reduction target from 100% to 90% and allowing some non-electric vehicles to remain on sale beyond 2035. This shift could help support palladium demand, as gasoline and hybrid vehicles would continue to require catalytic converters.Base metals scored modest gains on positive macro news, with nickel rebounding from oversold levels. Zinc prices stabilised and bounced, holding firm at the $3,050/t support level. With the broader uptrend (in place since Jul 2025) remaining intact, there is scope for a near-term recovery, potentially allowing zinc to retest the $3,100/t level in the near term. South32 confirmed that the 560ktpy capacity Mozal smelter would be placed on care and maintenance from mid-Mar, after talks with utilities and Mozambique's government failed to yield a new power deal. Europe is likely to fill the Mozal gap mainly via higher imports from Canada and the Middle East. Mozal's impending closure coincides with an outage at Century Aluminum's smelter in Iceland, which has slashed output by two-thirds due to electrical failure.Iron ore prices reflect weaker fundamentals. Inventories of iron ore at Chinese ports expanded for a fifth week to the highest levels since Mar. Chinese steel mills are slowing output, with Nov volumes down 10.9% YoY to 69.87Mt.