Copper prices pulled back, gold prices under pressure, iron ore continues its weakness

⑴ ING pointed out that, due to another sell-off in tech stocks and a stronger US dollar, copper prices briefly fell to around $13,657 per ton in the morning, approaching a four-month low. The market has retreated from the record high of nearly $15,000 per ton in September, as investors are reassessing expectations for AI-related demand. In addition, uncertainties caused by Trump's tariff statements have not yet dissipated. The institution believes that if the US dollar continues to strengthen, copper prices may remain under pressure in the short term. ⑵ Aluminum prices weakened slightly, but the price spread for near-term contracts on the London Metal Exchange remains exceptionally tight. The spot aluminum premium over the three-month contract exceeded $150 per ton this week, indicating that short-term supply constraints persist. ⑶ Iron ore prices continued to fall, with the Singapore benchmark once dropping 1.6% to $90.70 per ton, marking the fourth consecutive trading day of decline and approaching the psychological threshold of $90. Iron ore futures also weakened, and rebar prices fell as well, with the soft steel market continuing to weigh on upstream raw materials. The institution maintains a bearish outlook on iron ore due to weakening steel demand and increased seaborne supply. ⑷ As for precious metals, gold prices fell for a third straight trading day, dropping below $4,000 per ounce, as stronger US inflation data and hawkish statements from the Federal Reserve pushed up Treasury yields. The prospect of another rate hike is gaining traction, supporting the US dollar and putting pressure on the non-yielding asset of gold. The institution stated that in the short term, rising interest rates and a stronger US dollar may continue to suppress gold prices, but in the medium to long term, it remains constructive due to central bank purchases and safe-haven demand.