Closing summary
The rally in precious metals prices is taking a breather. Silver, platinum and palladium all hit all-time highs early in today’s trading session but have fallen since, as investors take profits.
Silver jumped above $80 an ounce for the first time this morning, but is now down 8% at $72.8 an ounce in volatile trading. Gold has lost 3.5% to $4,373 an ounce, after repeatedly hitting record highs this year.
Charu Chanana, chief investment strategist at Saxo Bank, said precious metals have been lifted this year by US interest rate cut hopes, and hedging against geopolitical and fiscal uncertainty. She added:
The big picture, however, for precious metals still looks structurally supportive with easier rates ahead, persistent fiscal and geopolitical unease, and ongoing diversification demand. That means any pullbacks may be seen as opportunities for long-term investors to rebuild exposure — though timing could still be bumpy after such a strong run.
Wall Street stocks have drifted lower as the technology rally that pushed the S&P 500 to new highs last week faltered. UK and European shares are up slightly.
Investors were hoping for a “Santa Claus rally,” where the S&P 500 posts gains in the last five trading days of the year and the first two in January, according to Stock Trader’s Almanac.
Oil prices have jumped over 2%, amid rising Middle East tensions and the latest Ukraine peace talks which failed to deliver an agreement. Brent crude climbed 2.2% to $62 a barrel while New York light crude rose 2.45% to $58.13 a barrel. Unrest in the Middle East, including Saudi air strikes in Yemen and Iran’s declaration of a “full-scale war” with the US, Europe, and Israel at the weekend, has triggered concerns of supply disruptions.
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Thank you for reading. We’ll be back tomorrow. Bye! – JK
Updated
Copper price on track for biggest rise in 15 years amid global shortage fears
Copper, the metal that underpins the fast-growing renewable energy industry, is on course for its biggest annual price rise in more than 15 years as traders react to fears of global shortages.
As one of the main beneficiaries of the “electrification of everything”, copper has soared by more than 35% in value this year, spurred by US tariff uncertainty and concerns about mining disasters that could restrict supply.
Analysts said copper had also joined silver and gold as a safe haven asset for investors wanting to hedge against the falling value of the dollar.
Silver reached a record high on Monday, pushing the value of the Mexican mining company Fresnillo, which is listed on the London stock market, to a record high this month. The price of gold has jumped above $4,400 (£3,263) an ounce, up more than 70% since the beginning of January.
Kyle Rodda, a senior financial market analyst at the investment company Capital.com, said the rise of copper, gold and silver demonstrated “a world marked by greater scarcity and investors’ desire to get their hands on things with relatively limited supply”.
