Daily metals

This MorningOvernight trading on the London Metal Exchange delivered a broadly positive session, with all base metals posting gains of around 1–2%. Aluminium and copper led the move with rises of 1.8% and 1.7% respectively, while zinc and tin followed closely at +1.3%. Nickel and lead both added around 1.0%. The uniform strength across the complex points to improved risk appetite and continued tightness in several metals, rather than isolated, metal-specific news.What's Moving MarketsOver the past few days, global markets have been shaped by a combination of renewed geopolitical uncertainty, shifting interest-rate expectations, and currency movements.Ongoing geopolitical tensions in the Middle East and Eastern Europe have supported demand for safe-haven assets, benefiting not only gold and silver but also lending indirect support to base metals through broader commodity inflows. At the same time, market participants have grown increasingly cautious ahead of upcoming U.S. economic data, particularly inflation and labor market indicators, which could influence the Federal Reserve’s rate outlook.Expectations that U.S. interest rates may remain restrictive but are approaching a peak have put downward pressure on the U.S. dollar. A softer dollar typically supports dollar-denominated commodities, helping explain the synchronized gains seen overnight across copper, aluminium, zinc, and tin.Supply Tightness Remains a Key ThemeBeyond macro drivers, physical market fundamentals continue to underpin prices. Copper markets remain sensitive to low inventories and ongoing supply risks, while tin prices are supported by constrained mine output and resilient demand from electronics and soldering applications. Aluminium continues to benefit from high energy costs in key producing regions, keeping smelter margins under pressure and limiting supply growth.The fact that both three-month and cash prices moved higher in tandem overnight suggests that the rally is not purely speculative, but also reflects near-term physical tightness.Currency ImplicationsThe overnight metals strength reinforces a broader theme in currency markets: commodity-linked currencies such as the Australian dollar, Canadian dollar, and Norwegian krone tend to find support when base metals perform well. Conversely, continued weakness in the U.S. dollar remains a critical tailwind for commodities, and any confirmation of softer U.S. economic data could amplify this dynamic in the days ahead.OutlookWith metals opening the day on a firm footing and macro uncertainty still elevated, markets remain highly sensitive to incoming economic data and geopolitical headlines. For now, the broad-based overnight gains of 1–2% across the LME complex highlight a market that is leaning cautiously bullish, supported by both fundamentals and macro tailwinds.