Gold rose, as did silver, but other commodities fell; oil lost ground, and copper dropped sharply.
The supposed driver of gold and silver’s surge on Tuesday — the prospect of lower rates in the US — did not impact other commodities.
In fact, copper sold off because the data from China, the biggest influence on the metal, was so weak in June.
The surge in Comex gold prices to new highs of $US2,474 an ounce for August shouldn’t be applauded by punters and urgers, as it could very well see China remain out of the market.
Spot gold peaked at $US2,465 an ounce, while the World Gold Council’s Australian dollar price topped out at $A3,664 an ounce.
This will likely result in significant price gains for gold miners today. Evolution Mining releases its June quarter and 2023-24 production data today and should be one to watch.
BHP also reports its June quarter and 2023-24 figures today; it will have a handy 300,000 ounces or so of gold in its data.
Silver prices were up 1.9% at $US31.35 an ounce, but copper shed 1.5% to $US4.46 a pound.
China has not bought gold for two months now, and the rise this month could see the People’s Bank of China — the country’s central bank — remain on the sidelines.
May’s record surge saw China’s buying vanish, and we will know by the end of the month if those high prices impacted demand from other central banks when the World Gold Council releases its quarterly report.
Besides the belief that the Fed will cut rates in September, the problems in Gaza and worries about Donald Trump caused prices to add to the already solid demand on Tuesday.
In Singapore, iron ore lost ground to end around $US10.7 a tonne for 62% Fe fines, and high-quality coking coal ended at $US242.50, $US4.50 above the June 28 level, the day before the Grosvenor mine in central Queensland caught fire.