Precious metals are up an average of 0.7% with palladium prices rebounding 1.7%, platinum prices up 0.6% and gold and silver prices both up around 0.3%. This follows a generally firmer day yesterday, when prices closed up an average of 0.3%. Concerns over President Trump’s unpredictability, with the sudden firing of acting Attorney General Sally Yates, seem to be underpinning bullion prices.
Base metals are a little changed, aluminum prices are off 0.3%, tin prices are up 0.3%, nickel prices are up 0.2%, while the rest are up a few dollars per ton. Three-month copper prices are at $5,853 per ton, although volume remains light, with 1,200 lots traded.
Yesterday’s trading saw fairly independent moves, some of which were large, with lead prices rebounding 3.3%, nickel prices up 1.9%, tin prices dropping 1.4%, copper and aluminum prices off 0.8% and zinc prices up 0.7%.
Generally the dips in base metals prices seem to be attracting buying, the exceptions being aluminum that probably overshot on the upside in recent weeks, and tin that is still trying to find support having broken out of its extended sideways range.
The strength in copper, lead and zinc prices mean those metals are still well placed to push ahead. The weakening of lead may provide lead prices with further fuel, but all eyes will be on whether the decline attracts metal into LME warehouses or not.
The precious metals have had an orderly pullback as profit-taking/liquidation emerged after the US inauguration, but the dips were well supported and the likes of silver and platinum are now well placed to extend gains. Gold prices pulled back slightly further, as did palladium prices, but the overall trends remain to the upside and gold may well pick up more safe-haven buying if President Trump starts to make more aggressive decisions.