Gold and Copper Bounce but Trade War Threatens Prices

Spot prices for gold and copper rallied last week - but longer term, the trade dispute between US and China has weighed on metals prices

Glenn Freeman 15 January, 2019 | 9:25AM

Spot prices for gold and copper have bounced in the New Year, as officials from Washington and Beijing prepare for further trade talks and the gold price countered the equity market downturn.

However longer term, the trade dispute between US and China has weighed on metals prices on expectations it could hurt demand, especially from China as the top global consumer. Copper on the London Metals Exchange has fallen to $5,926 a tonne, down 28% since the June 2018 peak of $7,250 and 4% down since 1 October.

Aluminium's $1,810 LME spot price is down 22% since the start of October 2018, and 25% below April 2018 peak of $2,597 a tonne.

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About Author

Glenn Freeman  is Senior Editor for Morningstar Australia

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