Latest news with #NiteshShah
Business Recorder
9 hours ago
- Business
- Business Recorder
Copper gains on dollar dip but geopolitical, tariff uncertainty linger
LONDON: Copper prices edged higher on Friday, supported by a slightly softer dollar, although gains were capped by concerns over the Iran-Israel war, U.S. tariffs and Chinese demand. Three-month copper on the London Metal Exchange was up 0.4% at $9,652 a metric ton in official open-outcry trading. Earlier in the session, prices hit the weakest since June 13 at $9,558.50. The U.S. dollar index eased 0.3%, making dollar-denominated metals more attractive to buyers using other currencies. 'We've got the geopolitical uncertainty in the background although maybe a little bit of reprieve on that side in the sense that Trump wants to allow a bit more time for diplomacy,' said Nitesh Shah, commodity strategist at WisdomTree. U.S. President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran air war, the White House said on Thursday. 'But we still have all the trade fears, which may have become a secondary feature over the last week. It's not that fardown the line before the expiry of the 90-day pause on the Liberation Day tariffs.' Copper hits near one-week low on stronger dollar, growth fears The 90-day pause in Trump's broadest 'reciprocal' tariffs will end on July 8. A Shanghai-based metals analyst at a futures firm said in addition to the Middle East and U.S. interest rates, investors were concerned about weaker demand in top metals consumer China. China's refined copper output in May gained 13.6% on the year to 1.25 million metric tons, data on Wednesday showed, in line with April's output, while the country's demand for metals such as copper and aluminium has been muted by summer seasonal weakness. U.S. Comex copper futures steadied at $4.88 a lb, bringing the premium of Comex over LME copper to over $1,000 a ton. Among other metals, LME aluminium ticked up 0.3% to $2,529, nickel fell 0.8% to $14,940, zinc edged up 0.1% to $2,643.5, lead dropped 0.2% to $1,988.5 while tin gained 1.3% to $32,425.
Business Recorder
13-06-2025
- Business
- Business Recorder
Copper up on dollar weakness
LONDON: Copper prices nudged higher on Thursday, aided by a weaker dollar, but persistent concerns over demand and unresolved trade tensions continued to cloud the market's outlook. Three-month copper on the London Metal Exchange was up 0.5% at $9,694 a metric ton by 1400 GMT, having gained more than a fifth since touching the lowest since November 2023 in April at $8,105. The dollar index slid to its lowest in over three years following US data, making greenback-priced metals more affordable for buyers using other currencies. 'Some support is coming from the weaker dollar. But more broadly, uncertainty around trade negotiations continue to pressure cyclical assets like copper,' said Nitesh Shah, commodities strategist at WisdomTree. US President Donald Trump said on Wednesday he would be willing to extend a July 8 deadline for completing trade talks, but added the US would send out letters in coming weeks specifying the terms of trade deals to dozens of other countries, which they could then embrace or reject. UBS said in a note that on the demand side, the latest manufacturing PMIs from China, Europe and the US all remain in contraction territory, highlighting the drag from the ongoing tariff situation. 'Weak PMI readings suggest that final copper demand should be subdued. That said, some front-loading of demand ahead of US tariffs has supported copper consumption, and US imports have tightened the market outside of the US,' the note added. In February, Washington launched an investigation into US copper imports, pushing COMEX prices to a notable premium over LME. Seizing the opportunity, traders have redirected copper flows toward the US from other regions. US COMEX copper futures added 0.1% to $4.82 a lb, bringing the premium over LME copper to $933 a ton. On the supply front, Ivanhoe Mines said on Wednesday that it had resumed underground operations at a section of its Kakula copper mine in the Democratic Republic of Congo (DRC), previously halted due to seismic activity. However, the company lowered its production guidance for the year. 'Downgrades to production estimates — particularly from the DRC — are weighing on the supply outlook. From our perspective, the market is heading toward a supply deficit by year-end,' added Shah. LME aluminium and tin were little changed at $2,516.50 and $32,660 a ton respectively, zinc eased 0.6% to $2,638, nickel dipped 0.2% to $15,150 while lead gained 0.5% to $1,996.50.
CNA
05-06-2025
- Business
- CNA
Silver surges past $35/oz level to hit a more than 13-year high
Silver has soared to the key milestone of $35 per ounce, reaching its highest level in more than 13 years, propelled by robust industrial demand and ongoing supply deficits, analysts said. Spot silver rose 2.5 per cent to $35.82 per ounce as of 1347 GMT, having touched its highest level since February 2012 at $36.08. "We have been expecting silver to close its performance gap with gold for some time. The metal has firm fundamentals, including being in a supply deficit and industrial demand being robust," said Nitesh Shah, commodities strategist at WisdomTree. The gold-silver ratio, which reflects how many ounces of silver are needed to buy an ounce of gold, currently stands around 94 - down from 105 in April, when it reached its highest level since May 2020. A lower gold-silver ratio means silver is gaining value relative to gold. Given silver's recent underperformance against gold, "it looks to me that there could be some ratio trading going on now that it's dipped below the 100 level," StoneX analyst Rhona O'Connell said. ROBUST INDUSTRIAL DEMAND Known both as a safe-haven asset and a vital industrial metal, silver has surged 24 per cent so far in 2025. Industrial uses account for more than half of global silver demand, according to the Silver Institute industry association. That demand has remained robust despite broader industrial headwinds in the past few years, said Shah, due in part to its role in solar and electrification. "With all precious metals in positive territory, I guess they are benefiting from similar factors - weaker US economic data supporting the case of rate cuts, which should support industrial demand at a later stage," said Giovanni Staunovo, UBS analyst. Meanwhile, gold has surged about 29 per cent in 2025, shattering records multiple times on safe-haven demand, expectations of U.S. rate cuts and robust central bank purchases. SUPPLY DEFICIT AND LONG-TERM OUTLOOK Silver is facing its fifth consecutive year of a structural market deficit, although the deficit is expected to narrow by 21 per cent in 2025, according to the Silver Institute industry association. "As silver is largely a by-product of mining for other metals, the elevated price will not necessarily drive a lot of new supply. So supply deficit markets may be maintained for longer," Shah added. "In the long-term, rising demand for silver as an industrial material means prices could reach $40 or even $50 per ounce," said Fawad Razaqzada, market analyst at City Index and
Business Recorder
27-05-2025
- Business
- Business Recorder
Copper retreats on tariff uncertainty and firmer dollar
LONDON: Copper prices lost ground on Tuesday, pressured by a firmer dollar and uncertainty over U.S. tariffs, retreating from their strongest in nearly two weeks after persistent problems at a large mine in Congo. Three-month copper on the London Metal Exchange was down 0.3% to $9,585 a metric ton by 1015 GMT after hitting its highest since May 14 at $9,634. 'We just don't know which way tariffs will go, how U.S.-European negotiations are going,' said WisdomTree commodity strategist Nitesh Shah. U.S. President Donald Trump's decision to drop his threat to impose 50% tariffs on European Union imports from next month gave new impetus to trade talks, the EU said on Monday. U.S. Comex copper futures slid 1.8% to $4.75 per lb, bringing the premium over LME copper to $888 a ton. Also weighing on the market was the firmer dollar, making dollar-denominated assets more expensive for buyers using other currencies. The most-traded copper contract on the Shanghai Futures Exchange was down by 0.08% to 78,210 yuan ($10,878.36) a ton. Copper dips on Trump's tariff threats In top metals consumer China, end-user demand is gradually slowing and fundamentals could weaken as copper demand approaches its off season, said Chinese consultancy Everbright Futures. Helping to cap losses in copper was news that Ivanhoe Mines suspended its output forecast for this year after seismic activity at its giant mine in the Democratic Republic of Congo halted underground mining operations. The DRC is the biggest copper producer in Africa. Among other LME metals, aluminium lost 0.3% to $2,456 a ton, zinc was flat at $2,701.50, lead slipped by 0.8% to $1,976, nickel lost 1.8% to $15,310 and tin was down 0.5% at $32,650.
Business Recorder
18-05-2025
- Business
- Business Recorder
Gold slips, heads for worst week in six months on easing trade tensions
NEW YORK: Gold prices dropped more than 2% on Friday and were heading for their worst week in six months, as an overall higher dollar and a temporary US-China trade agreement dented demand for the safe-haven metal among investors. Spot gold was down 1.9% to $3,178.06 an ounce as of 1136 GMT. Bullion has lost more than 4% so far this week and is set for its worst weekly performance since November 2024. US gold futures fell 1.4% to $3,180.90. 'We've gone through a week where there have been optimistic signals in terms of trade negotiations and we have seen the dollar appreciate on the course, which is weighing on gold prices,' said Nitesh Shah, commodities strategist at WisdomTree. Earlier this week, the US and China agreed to temporarily slash the harsh tit-for-tat tariffs imposed in April, lifting sentiment in the wider financial markets. The dollar index was subdued on the day, but was heading for its fourth straight weekly gain, making gold less attractive for other currency holders. Gold, used as a safe store of value during times of political and financial uncertainty, scaled an all-time high of $3,500.05 per ounce last month, boosted by central bank buying, tariff war fears and strong investment demand. Offering some respite to gold, signs of slowing inflation and weaker-than-expected economic data in the United States this week cemented bets of more Federal Reserve rate cuts this year. Non-yielding gold tends to thrive in a low-rate environment. 'On the plus side, gold price dips continue to attract buyers, which shows that the precious metal remains a favoured asset, with the global growth and inflation outlooks still looking rather murky,' said Tim Waterer, chief market analyst at KCM Trade. Elsewhere, spot silver dipped 1.8% to $32.08 an ounce, platinum eased 0.5% to $985.1 and palladium lost 1% to $958.24.
