Copper prices have surged to a new record high, driven by a significant increase in requests to withdraw metal from London Metal Exchange (LME) warehouses. The spike in withdrawal orders, the largest since 2013, was primarily fuelled by demand in Asia. Prices rallied as much as 2.4%, exceeding $US11,400 a tonne and surpassing the previous peak set on Monday.
Data from the LME revealed that Taiwan and South Korea were the primary sources of the increased copper demand. This surge reflects ongoing robust industrial activity and infrastructure development in these key Asian economies, which are heavily reliant on copper for various applications. The increased demand has placed upward pressure on global copper prices, impacting industries worldwide.
Silver experienced a volatile trading session, initially climbing to a new record high before retracing its gains. The precious metal reached a peak of $US58.9471 an ounce before falling as much as 1.6%. Meanwhile, gold prices remained relatively stable amidst the broader market fluctuations. Investors are closely monitoring upcoming US economic data, delayed due to a government shutdown, to assess the economic outlook and potential shifts in borrowing costs. Key figures on jobs and industrial production are expected later today.
These economic indicators are crucial for gauging the overall health of the US economy and their potential impact on monetary policy decisions. Market participants are keenly awaiting these data releases to gain insights into future trends and adjust their investment strategies accordingly. The delayed data is anticipated to provide clarity on the trajectory of economic growth and inflation, factors that significantly influence commodity and currency markets.
