The metals market, particularly copper, is showing encouraging signs in London thanks to two major factors: expectations of an upcoming interest rate cut in the United States and supply disruptions in Chile, the world’s leading copper producer. This combination is supporting copper prices, which are trading around $9,684 at the London Metal Exchange (LME). Moreover, trade tensions between the US and China appear to be easing somewhat, boosting prospects for increased demand in metals, especially in industrial and technology sectors.
Gold remains well supported, fully benefiting from the Federal Reserve’s anticipated rate cuts and its traditional role as a safe-haven asset during economic slowdowns. Recently, the announcement of new US tariffs on several products, including some imported from Switzerland, triggered significant volatility in the gold market. However, gold imports originating from Switzerland were subsequently explicitly excluded from these tariff measures, easing concerns about supply disruptions in the US, reducing volatility, and limiting the negative impact on the yellow metal. This clarification has bolstered investor confidence, helping to sustain gold prices around $3,400 per ounce despite an uncertain geopolitical and economic environment.
Analyst Recommendations:
Analysts hold a positive medium-term outlook on copper, highlighting that the combination of constrained supply (notably in Chile) and potentially strengthened demand due to easing trade tensions creates a favorable context. However, they advise caution in the short term due to volatility linked to geopolitical and broader macroeconomic uncertainties. Regarding gold, experts recommend maintaining a defensive stance, taking advantage of the relative stability of the metal in an uncertain economic environment sensitive to central bank decisions.