Metals Prices Hold Firm as Gold and Silver Gain on Rate Cut Hopes, While Copper and Platinum Remain Cautious Ahead of US Policy Signals

London | EcoPulse24

Global metals prices reflected a delicate balance during today's trading, with supportive factors such as a weaker US dollar and increased bets on interest rate cuts offset by pressures from slowing industrial demand and the approach of Asian holidays. Precious metals maintained a clear upward momentum, while industrial metals showed more cautious performance amid mixed global economic signals.

Gold prices remained relatively high, trading at $5,057.73 per ounce - up $33.83 (0.67% daily gain), with strong annual gains of 74.04% and nearly 9.98% in the recent period. This resilience was driven by expectations of looser US monetary policy following weak economic data, including slower US retail sales, which boosted rate cut bets. Continued central bank purchases, especially by the People’s Bank of China for the fifteenth consecutive month in January, provided additional support, alongside ongoing geopolitical risks.

Silver outperformed, rising to $82.626 per ounce - up $1.847, or 2.29% on the session. Despite a recent dip of 3.00%, annual gains hit 155.91%, reflecting the metal’s sensitivity to risk appetite and hedging demand. Silver’s rise was fueled by increased safe-haven demand amid weak US data and heightened concerns over US economic prospects, with markets pricing in around 60 basis points of monetary easing by year-end.

Copper held steady above $5.90 per pound, last at $5.93 (up 0.29%), though it fell 1.67% recently with annual gains of 26.57%. The metal’s performance reflected expectations of softer short-term demand due to slowing Chinese economic activity ahead of the Lunar New Year, despite ongoing support from supply disruptions and global demand tied to energy transitions and AI-driven data center expansion. China’s Nonferrous Metals Industry Association estimates refined copper output will grow about 5% in 2026, slower than the previous year, while financial institutions estimate a market surplus last year despite record prices earlier in 2026.

Among other industrial metals, steel fell to $3,049 per ton (down $3 or 0.10%), with recent losses of 2.62% and an annual decline of 5.92%, reflecting weak demand in construction and heavy industry. Lithium, meanwhile, rose to $138,000 per ton (up $2,000 or 1.47%), despite a recent drop of 9.21%, holding strong annual gains of 80.04% amid ongoing battery and EV supply chain demand.

Platinum reached $2,144.10 per ounce (up 2.08% daily), with recent losses of 9.93% but robust annual gains of 106.98%. Platinum’s volatile moves were influenced by hawkish Fed signals and a stronger dollar, which dampened investor appetite, as well as concerns over weaker demand for catalytic converters due to high prices. Supply constraints limited downside pressures, with global output heavily reliant on South Africa, which faces chronic operational challenges.

EcoPulse24 Analysis:
Metals price movements indicate markets are repricing the balance between growth, inflation, and monetary policy. The strong momentum in gold and silver reflects the rising role of safe havens amid uncertainty and increased rate cut expectations, while copper and industrial metals remain tied to Chinese demand and the global industrial cycle. Ongoing supply constraints in some metals, like platinum and lithium, provide structural price support, though deeper global economic slowdowns could limit this. Overall, metals markets appear at a pivotal stage, with the impact of expected monetary easing competing with signals of real demand slowdown to set the direction ahead.