Investors Await Rates as Metals Surge

Copper and gold prices hit record highs in Asia trade on Monday, with silver also surging over $30 an ounce. The breakout gains come amid uncertainty in bonds and currencies, while world stocks hover just below last week’s record peak.

Gold’s 18% rally this year has been fueled by Chinese buying, global political tension, and expectations of falling U.S. rates. Copper prices are soaring due to China’s efforts to boost its property market, with officials pledging a trillion yuan in funding for affordable housing and redevelopment.

Last week, reports emerged that traders Trafigura and IXM were seeking physical copper to deliver against large short positions in Chicago futures, leading to increased trading volumes in Shanghai and London. Silver has also seen a 3% gain in Asia, surpassing $30 an ounce.

Oil prices showed no immediate reaction to reports of a helicopter crash in Iran that reportedly killed the country’s president and foreign minister. The week ahead is light on data but includes preliminary PMI figures, Federal Reserve minutes, Nvidia earnings, and various policymaker speeches.

Bonds rallied and the dollar fell last week after U.S. inflation slowed as expected. However, Treasuries retraced and yields rose on Friday, while the dollar found some support as investors await more data to gauge the economic outlook.

Overall, the markets are bracing for central bank minutes and speeches this week, with key developments including speeches from Fed Vice Chair Philip Jefferson, Riksbank’s Jansson and Thedeen, and BoE’s Broadbent. Investors will be closely watching for any clues on future monetary policy decisions.