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Gold surges, copper reaches high, oil dips ahead of US inflation report

Gold hit an all-time high of $2,384.50 per ounce on Tuesday on Comex in New York, before easing to trade around $2,371 per ounce at 7am Sydney time on Wednesday. This surge led to a 6% gain over the last five sessions, with the local price hovering around $3,550, albeit having touched $3,555 earlier in the session. Ole Hansen, head of commodity strategy at Saxo Bank, noted, “Strong underlying momentum with the buy-on-dip still the prevailing strategy among traders,” citing geopolitical tensions and concerns about inflation.

However, the focus now turns to tonight’s US Consumer Price Index (CPI) data, with expectations significantly influencing financial markets, particularly Wall Street. The Australian dollar made marginal gains ahead of the inflation report, trading around 66.28 US cents in early Asian dealings.

Silver also surged, hitting its highest since June 2021, trading around $28.26 per ounce on Comex, marking a gain of over 12% in the past five sessions. Comex copper touched a high of $4.335 per pound, the highest since early 2023, settling around $4.29 per pound, up nearly 6% over the last five days.

Meanwhile, oil experienced a slight dip, with US West Texas Intermediate crude falling 1.4% to trade around $85.22 per barrel, while Brent crude remained below $90 per barrel, trading around $89.42.

In Singapore, iron ore futures continued their upward trajectory on the SGX trading platform, with May futures rising 3.4% to $107.84 per tonne, marking a 10% increase from the most recent low last Friday of $97.74 per tonne.

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