Base metals and gold rose slightly on a softer dollar, but weakening expectations of early interest-rate cuts this year continued to weigh on sentiment.
“Concerns about resurging inflationary pressures due to geopolitical uncertainty in the Middle East, combined with a robust economy, suggest that the Fed may not need to rush into implementing monetary policy easing,” Sucden Financial said.
ANZ said that going forward, gold “is set to benefit from easing monetary policy, elevated geopolitical risks and strong central bank buying.”
Copper prices have already likely bottomed, Macquarie said, which had previously seen them cratering deep into 2024.
It now expects a more balanced copper market this year, with prices averaging US$8,125/ton, up some 3.8% on its prior forecast.