Copper prices saw an uptick on the London Metal Exchange today, climbing 0.2% to $9,478.0 per ton at 0825 IST. This increase is attributed to several factors impacting global supply, including production cuts by Chinese smelters and disruptions at major mines in Africa, Panama, and South America. Additionally, local protests demanding more benefits at the Las Bambas copper mine in Peru and a 5.5% decline in Chile’s copper exports in March further strained supplies, supporting the ongoing price increase.
In other commodity news, gold prices experienced a rise on the COMEX, trading at $2,376.7 per ounce as of 0804 IST, up by 0.2%. This surge is driven by increased safe haven demand amid escalating tensions in the Middle East, particularly due to Iran’s drone attacks on Israel. The uncertainty in the region has heightened geopolitical risks, influencing market dynamics. Additionally, increased buying by China’s central bank, strong retail demand in China, and new investments in gold exchange-traded funds are contributing factors to the price lift. However, the significant risk premium already priced into gold may temper further gains.
Meanwhile, crude oil prices on the NYMEX fell, with West Texas Intermediate May contracts down 0.3% at $85.43 per barrel as of 0716 IST. A strengthening dollar, which renders oil more expensive for holders of other currencies, played a crucial role in this decrease. The market’s muted response to Iranian strikes over the weekend suggests that geopolitical fears may already be factored into current oil prices. Further developments in the Middle East, particularly Israel’s response to the attacks, will play a critical role in shaping future oil market dynamics. 
