Daily metals

Overnight trading on the LME showed a broadly firmer tone across base metals. Copper and aluminium led the gains, with three-month copper up around 0.6% and aluminium rising 1.6%, while nickel, lead and zinc also edged higher. Tin was the only notable laggard, slipping about 0.5%, reflecting some profit-taking after recent strength. Overall, price action points to steady risk appetite and continued underlying support across the complex.Since Friday morning, 19 December, global metal markets have been shaped by a combination of monetary policy expectations, currency movements and renewed concerns over supply — a mix that has broadly supported prices across both precious and industrial metals.The strongest momentum has been seen in precious metals, where gold and silver have continued to push higher. Gold has traded at fresh record levels, driven largely by growing confidence that the Federal Reserve is moving closer to a more accommodative stance in 2026. Following the latest U.S. rate cut, investors have increasingly priced in further easing, reducing the opportunity cost of holding non-yielding assets such as gold. At the same time, persistent geopolitical uncertainty has reinforced gold’s role as a safe haven. Silver has followed suit, benefitting both from investor demand and its growing importance in industrial and energy-transition applications.Currency markets have added another tailwind. The U.S. dollar has softened over the past days, making dollar-denominated commodities cheaper for buyers using other currencies. Historically, this relationship has been particularly supportive for precious metals, and the latest dollar weakness has amplified the upside move in gold and silver.In base metals, attention has returned to supply. Copper prices have moved closer to record territory as traders reassess the tightness of the global market. Years of underinvestment in new mining capacity continue to collide with structural demand from electrification, grid expansion and renewable energy projects. Even modest supply disruptions or production constraints are now enough to trigger sharp price reactions, underscoring how finely balanced the copper market remains.China, meanwhile, is sending mixed but important signals. Steel output has fallen to multi-year lows, reflecting subdued domestic construction activity. Yet iron ore imports remain exceptionally strong, suggesting that mills are restocking at current price levels in anticipation of future stimulus measures. For metal markets, this points to short-term caution but keeps the medium-term demand outlook alive, given China’s outsized role in global consumption.Broader macroeconomic data from Europe has also contributed to sentiment. While growth remains uneven, industrial activity has shown signs of stabilisation, offering modest support for base metals tied to manufacturing and infrastructure.Taken together, developments highlight a familiar but powerful theme for metal markets: monetary policy and currencies are driving investment flows, while structural supply constraints continue to underpin industrial metals. As the year draws to a close, traders appear increasingly willing to look beyond short-term economic softness and focus on longer-term fundamentals — a stance that keeps the bias tilted to the upside for many metals.