Commodity Market Update

Advisory Bazaar Info Services

🔹 Base Metals

Base metals traded mostly lower in China. SHFE Copper fell 1.52%, Zinc 1.78%, Tin 2.19% and Nickel 0.84%, while Lead gained 0.25%.

LME metals also traded lower, with Zinc down 1.11%, Copper 0.56% and Aluminium 0.32%.

🔹 Precious Metals

COMEX Gold fell 1.31% and Silver declined 1.86%. In the domestic market, SHFE Gold dropped 3.04% and Silver 4.34%. Platinum and Palladium futures declined 4.20% and 5.85%, respectively.

🔹 Steel

Ferrous metals remained under pressure. Iron ore fell 1.32%, Rebar 0.91% and HRC 0.29%, while Stainless Steel declined 0.51%.

🔹 Copper Spot

Guangdong copper spot premiums weakened. High-quality copper was quoted at a premium of 260 yuan/mt, standard-quality copper at 180 yuan/mt and SX-EW copper at 110 yuan/mt. Guangdong copper inventories declined for the 12th consecutive trading day and fell below 10,000 mt.

🔹 Macro Outlook

The US Dollar Index rose 0.12% to 99.78. Higher oil prices and persistent inflation concerns are increasing expectations that the US Federal Reserve may need to raise interest rates. Fed Governor Michael Barr also said the central bank should be prepared to hike rates if inflation does not cool sufficiently.

The Reserve Bank of New Zealand raised its Official Cash Rate by 25 basis points to 2.75%. Meanwhile, expectations of a possible September rate hike by the Bank of Japan have strengthened.

🔹 Crude Oil

WTI crude rose 0.54% and Brent crude gained 0.82%. Rising Middle East tensions and lower shipping activity through the Strait of Hormuz increased concerns over supply disruptions, supporting oil prices.

🔹 Key Data to Watch

Markets will focus on US ADP employment data, US Factory Orders, the Bank of Canada interest-rate decision and the RBNZ monetary policy decision.

Market View: A stronger US dollar, expectations of higher interest rates and geopolitical uncertainty are weighing on metals, while crude oil remains supported by supply disruption risks.