Morning Bid: Copper surpasses silver to lead gold

Gregor Stuart Hunter Looks Ahead to European and Global Markets

After a strong year for precious metals, industrial metals are taking the main stage as copper futures prices in Shanghai reach new heights, fueled by expectations of more economic stimulus from China.

With the U.S. dollar slipping to a two-month low — a result of this week’s Fed rate cuts and a shift away from a hawkish policy stance — investors are increasingly looking towards real assets to safeguard their purchasing power.

As for silver, it’s already reacted to the weak dollar sentiment, falling 0.3% on Friday after a record high of $64.31 was reached just the day before. Gold, meanwhile, has pulled back from a seven-week peak.

In Asian stock markets, we saw some gains, despite concerns regarding a potential AI bubble impacting tech stocks. The MSCI Asia-Pacific Index (excluding Japan) rose 0.8%, buoyed by a strong showing on Wall Street, while the TOPIX also gained. Stocks surged 1.5%, hitting a new high, with Sumitomo Metal Mining (5713.T) leading the charge with a 6.7% rise.

On the tech front, Oracle (ORCL.N) experienced a 13% drop, unsettling the sector after revenue growth forecasts from partners in the OpenAI cloud computing space disappointed.

Despite Broadcom’s (AVGO.O) acquisition bringing a glimmer of hope with anticipated earnings surpassing earlier expectations, any relief quickly faded. Oracle’s stock fell by 5% in after-hours trading due to projections indicating a decline in quarterly profit margins. Futures for Nasdaq showed slight declines, while S&P 500 e-mini futures remained mostly flat.

Crude oil prices found some stability, predominantly due to geopolitical factors rather than shifts in demand. North Sea Brent futures ticked up 0.7% to $61.70 following threats from U.S. President Donald Trump regarding drug trafficking routes between the U.S. and Venezuela, which has raised supply concerns as multiple sources reported preparations to intercept more tankers.