1204 GMT – Gold futures rise on persistent safe-haven demand. Futures are up 0.2% at $2,926.80 a troy ounce. The precious metal has gained on a weaker dollar and a flight to safety as trade war risks intensify on President Trump’s tariff policy. That said, the difference between gold prices in the U.S. and Europe has narrowed as concerns over tight physical markets ease, SP Angel analysts say in a note. The premium on U.S. commodities exchange Comex over LBMA futures prices had risen as high as $60 an ounce in January on rising concerns that Trump would tariff gold, SP Angel says. Those fears have now faded, with the spread narrowing to around $10 an ounce, compared with a normal difference of $2 an ounce. Comex gold stockpiles have also risen to a four-year high, cooling short-squeeze concerns, SP Angel adds. (
[email protected])Base Metal Prices Rise; Aluminum Market Set for Deficit in 2025
1204 GMT – Base metal prices rise, with LME three-month copper up 1.5% at $9,526 a metric ton and LME three-month aluminum up 0.7% at $2,641.50 a ton. The global aluminum market is set to tighten to a 600,000 metric ton deficit in 2025, as slowing supply growth rubs up against stronger-than-expected demand, particularly in China, JPMorgan analysts say in a note. The around 3% compound annual growth in global primary supply seen over the last five years is expected to fall to just 1.3% on year in 2025, JPM says. Demand growth will face headwinds too, with tariff risks a serious concern, but global growth should still rise around 2%, analysts say. Higher aluminum costs on the back of 25% U.S. import tariffs should make U.S. restarts more likely in the coming quarters, JPM adds. ([email protected])
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