Metals Daily

This MorningOvernight trading saw mixed but generally modest moves across the base metals complex. Copper and nickel edged lower, each down around 0.4%, while zinc also softened slightly. Tin recorded the largest decline, falling just over 1%, reflecting heavier selling pressure. In contrast, aluminium and lead posted small gains of around 0.5% and 0.3% respectively, providing some offset to the broader weakness. Overall, price action remained relatively contained, suggesting cautious positioning rather than a decisive shift in market sentiment.What's Moving MarketsCopper, often seen as a bellwether for global industrial activity, eased slightly after reaching recent record highs. The pullback followed weaker-than-expected Chinese economic data, reinforcing concerns about slowing growth in the world’s largest consumer of industrial metals. Persistent softness in China’s manufacturing and property sectors has dampened sentiment across the base metals complex, putting pressure on prices of copper and its peers. However, the downside in copper was limited. Prices found support from short-covering and positioning ahead of contract expiries, underlining how market dynamics and technical factors can temporarily outweigh fundamental demand concerns.In contrast, precious metals continued to rally. Gold and silver prices rose across major markets, supported by a weaker U.S. dollar and ongoing safe-haven demand. Investors also remained focused on inflation trends and upcoming central bank policy decisions, both of which could reinforce the appeal of non-yielding assets such as gold.The strength in precious metals spilled over into equity markets, with Canada’s TSX futures advancing on the back of gains in mining and metals-linked stocks. The move suggested broader risk flows into the metals sector as investors positioned ahead of key inflation data.In structural market news, the London Metal Exchange announced proposed reforms to position limits for key base metals, including aluminium, copper, lead, nickel, tin and zinc. The changes, aimed at improving risk transparency and aligning with regulatory requirements, could influence liquidity and speculative activity once implemented in mid-2026, with potential longer-term implications for price behaviour.More broadly, global equity markets also provided a supportive backdrop. U.S. equity futures, including the Dow, moved higher, signalling improved risk appetite. Industrial metals often trade in tandem with equity sentiment, particularly when growth expectations are in focus.Looking ahead, market participants will continue to monitor China’s demand outlook, currency movements and central bank signals. A softer U.S. dollar remains a key support factor for dollar-denominated commodities, while upcoming inflation data and policy decisions across major economies are expected to shape interest-rate expectations — and, by extension, metal prices in the days ahead.