Gold continues to struggle to regain momentum. Even the renewed tensions between the United States and Iran failed to trigger the usual flight toward safe-haven assets. Investors are instead focused on the crisis’s impact on energy prices: more expensive oil could reignite inflationary pressures and push the Federal Reserve to keep interest rates higher for longer. This scenario is unfavorable for gold, which mechanically suffers when yields remain attractive. Despite this challenging backdrop, gold shows a degree of resilience and remains above the symbolic 4,000 USD threshold.
Copper experienced a more volatile week. Initially weighed down by rising risk aversion, the red metal later rebounded thanks to a weaker dollar and hopes of easing tensions in the Middle East. On the LME, three-month copper ended the week around 13,500 USD per tonne. Investors nevertheless continue to closely monitor the conflict’s repercussions on inflation, interest rates, and global growth. Highly sensitive to the economic cycle, copper is likely to remain driven by expectations surrounding U.S. monetary policy and overall risk appetite.