SunSirs: Precious Metals Lead The Way in The International Commodities Market

This week, the international bulk commodity market showed a differentiated trend, with precious metals, especially gold, performing strongly, while the basic metal market overall weakened. After touching historical highs, gold prices have corrected, but overall, they still operate at high levels. Silver prices have followed gold's upward trend, while platinum group metals have shown mixed performances. Basic metals such as copper and zinc have continued their weak adjustment. Among them, the precious metal market overall increased, with gold's performance being particularly prominent. The average spot gold price on the London Metal Exchange (LME) this week was $3,358.83 per ounce, up 2.22% week-on-week and 44.13% year-on-year, setting a new historical high before a slight correction; the gold futures price on the New York Commodity Exchange (COMEX) also showed strong performance, with an average price of $3,346.82 per ounce, up 2.40% week-on-week and 43.65% year-on-year.

Although the silver market failed to replicate gold's strong performance, it still maintained a strong position overall. The average silver price on the London Metal Exchange was 32.6831 cents per troy ounce, down 0.11% week-on-week, but up 18.16% year-on-year; the average silver futures price on the COMEX was $32.52 per ounce, up 0.43% week-on-week and 17.31% year-on-year. Among the platinum group metals, the price of platinum showed relatively strong performance, with the average platinum price on the London Metal Exchange at $983.69 per troy ounce, up 0.66% week-on-week and up 0.63% year-on-year; while palladium showed mixed performances, with the average palladium price on the London Palladium Exchange at $970.17 per troy ounce, up 2.22% week-on-week, but down 0.61% year-on-year.

From the price range, this week, the highest price of London gold touched $3,395.26 per ounce, and the lowest was $3,312.25 per ounce; the highest price of COMEX gold futures was $3,430.9 per ounce, and the lowest was $3,302.1 per ounce, with a significantly expanded fluctuation range. The basic metal market overall weakened this week. The average price of COMEX copper futures was $4.622 per pound, down 1.44% week-on-week and basically flat year-on-year, up only 0.08%; while the average copper futures price on China's Shanghai Futures Exchange (SHFE) was 75,357.5 RMB per ton, down 0.96% week-on-week and down 6.22% year-on-year. The zinc market also loaded, with the average zinc futures price on the Shanghai Futures Exchange at 22,057.5 RMB per ton, down 0.98% week-on-week and down 5.54% year-on-year. Overall, global basic metal prices show a gentle downward trend, forming a stark contrast to the precious metal market.

The main reasons for the differentiated performance of the commodity market this week are as follows: First, geopolitical risks continue to ferment. US President Trump announced a 100% tariff on movies produced overseas and revealed plans to announce tariff plans for the pharmaceutical industry in the next two weeks, which has led to a rise in trade tensions. Although the United States and the United Kingdom have reached a trade agreement, the outlook for global trade friction remains uncertain, and the European Union has announced that it is considering taking countermeasures against up to 95 billion euros worth of US imported goods.

At the same time, high-level economic and trade talks between China and the United States are about to be held in Switzerland, and the market is full of expectations for the results of the negotiations. Second, the Fed maintained interest rates but Powell stated that more data is needed to start cutting rates and expressed concerns that Trump's tariffs may lead to inflationary pressures, which has led to a cooling of the market's expectations for a Fed rate cut. Third, from a supply and demand perspective, an interesting phenomenon has emerged in the global copper market: in anticipation of Trump's tariff policies, a large amount of copper has been shipped to the United States, leading to a 61% increase in US COMEX copper inventories since the end of March, reaching a new high since October 2018, while copper inventories at the Shanghai Futures Exchange plummeted by 60% in April, marking the largest decline on record, reflecting significant changes in the trade landscape.

In addition, China's imports of unwrought copper and copper alloys in April were flat year-on-year but down 6.2% month-on-month, further affecting market sentiment.Looking ahead, precious metals, especially gold, are still likely to maintain their strength, but short-term volatility may intensify. As the uncertainty of Trump administration's tariff policies, the progress of Sino-US trade negotiations, and the gradual clarification of the Fed's monetary policy path become clearer, the market may experience greater fluctuations.

At the same time, the price trend of base metals will depend more on global economic growth expectations and the strength of China's demand recovery, and may continue to face pressure and adjustment in the short term. Investors need to closely monitor key factors such as the development of high-level economic and trade dialogue between China and the United States, changes in the global trade landscape, and the Fed's policy signals.

As an integrated internet platform providing benchmark prices, On September 2nd, the benchmark price of gold by SunSirs was 787.66 RMB per gram, an increase of 0.98% compared with the beginning of this month (779.99 RMB per gram).

On September 2nd, the benchmark price of silver by SunSirs was 9,637.33 RMB per kilogram, an increase of 3.35% compared with the beginning of this month (9,325.00 RMB per kilogram).

On September 2nd, the benchmark price of copper by SunSirs was 79,993.33 RMB per ton, an increase of 0.75% compared with the beginning of this month (79,401.67 RMB per ton).

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