Gold and copper led the day’s gains on the international spot markets, as global commodity markets recorded a strong upward swing on Thursday.
Both commodities provided a strong cushion for resource‑heavy economies despite ongoing volatility in the global energy sector, driven by a powerful rally in precious and industrial metals as intensifying geopolitical risks and supply constraints triggered a wave of institutional buying.
According to Frontier Market daily analysis on Thursday, the sharp recovery across metal segments provided a vital structural hedge for resource‑dependent emerging economies, balancing out severe headwinds triggered by intensifying Middle East conflicts and localised regulatory overhauls across the continent.
Spot gold advanced by 1.23 per cent to trade comfortably above the $4,100 per ounce threshold. Analysts attribute the bullion’s sustained momentum to growing macroeconomic policy risks, safe‑haven demand amid escalating Middle East tensions, and aggressive physical accumulation by central banks, notably in Asia.
The commodity has increasingly shifted from a standard inflation hedge into vital financial collateral, pushing its year‑on‑year return past 24 per cent.
In the industrial metals segment, copper prices jumped 2.37 per cent, driven by a tightening supply outlook and accelerating resource nationalism. Research firms have recently upgraded their near‑term forecasts for the red metal as global mining firms face structural production deficits and major economies move aggressively to secure critical mineral supply chains for energy transition technologies.
Other metals also tracked the broader market upswing, with silver climbing over three per cent and platinum gaining more than three per cent during the session.
Conversely, energy markets painted a mixed picture. Natural gas prices plunged 2.86 per cent, while the global oil benchmark, Brent crude, eased slightly by 0.33 per cent as traders evaluated regional energy infrastructure risks and the fallout from recent military strikes in the Gulf. RBOB gasoline managed a marginal recovery, edging up 0.13 per cent.
Market experts note that the divergence between surging metal prices and cooling energy indices underscores a structural shift in investor positioning, where tangible assets with zero counterparty risk are being heavily prioritised amidst evolving macroeconomic and corporate developments.
Jide, a seasoned journalist with over 12-year experience, reports business-related stories.
