After a strong year for precious metals, attention in the commodities market has shifted to industrial metals, with copper leading the charge. Investors are responding to expectations of additional stimulus measures from China, pushing Shanghai copper futures to record highs and outpacing gains in silver and gold.
Copper Climbs as China Stimulus Boosts Demand
The prospect of renewed Chinese economic stimulus has sparked increased buying in copper, a key industrial metal used in construction, electronics, and renewable energy infrastructure. As global markets anticipate higher demand, Shanghai copper futures surged to new record levels, reflecting confidence in continued industrial activity in Asia’s largest economy.
At the same time, the U.S. dollar fell to a two-month low following the Federal Reserve’s latest interest rate cut and a more dovish policy stance than expected. This weakening of the dollar is encouraging investors to move into real assets like copper, silver, and gold, as a hedge against potential currency debasement.
Silver and Gold Take a Step Back
Silver, which had recently reached a record high of $64.31 per ounce, edged down 0.3% on Friday, while gold pulled back from its seven-week high. Analysts note that these fluctuations are consistent with investor rotation into industrial metals like copper, which stand to benefit more directly from China’s stimulus-driven infrastructure projects.
Broader Market Movements
Asian stock markets posted gains despite ongoing concerns about a potential AI bubble, which has weighed on tech shares. The MSCI Asia-Pacific ex-Japan Index rose 0.8%, while Japan’s Topix Index surged 1.5% to a record high, led by a 6.7% gain for Sumitomo Metal Mining, a major copper and nickel producer.
The tech sector faced pressure after Oracle shares dropped 13% following weaker-than-expected revenue guidance tied to cloud computing partnerships with OpenAI. Conversely, Broadcom’s better-than-expected revenue projections offered a brief boost before shares fell 5% in after-hours trading due to margin concerns.
Oil prices also moved higher for geopolitical reasons rather than demand, with Brent crude rising 0.7% to $61.70 per barrel, amid U.S. threats to intercept Venezuelan shipments.
European Market Outlook
In early European trading, major futures indices were up:
- Pan-region futures: +0.4%
- German DAX futures: +0.4%
- FTSE futures: +0.4%
Economic data due later in the day, including Germany’s CPI, U.K. GDP estimates, and France’s CPI, along with UK debt auctions, may influence market movements.
Outlook for Metals Investors
With copper outperforming silver and gold, investors are increasingly focusing on industrial metals to capture growth driven by China’s infrastructure stimulus. Meanwhile, precious metals remain a hedge against dollar weakness and global uncertainty, making this a pivotal moment for commodities and metals markets heading into 2026.
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