Online Reporter
Gold rose above US$5 200 per ounce yesterday, hitting new record highs as a sharp decline in the dollar fuelled investor demand for safe-haven metals.
Those moves came as US President Donald Trump said that he is not concerned about the dollar’s recent drop as it sinks to its lowest level in four years, signalling that the administration is comfortable with a weaker greenback to support export competitiveness.
Policy uncertainties in Washington, including Trump’s tariff threats against other nations and attacks on the Federal Reserve’s independence, further underpinned the rally in precious metals.
Meanwhile, the Fed is widely expected to hold interest rates steady on Wednesday, with markets focused on any guidance regarding the timing of the next rate cut.
Gold has also benefited from robust central bank buying and continued ETF inflows. The yellow metal has surged about 20 percent year-to-date, while silver has jumped nearly 60 percent.
Lithium carbonate futures surged past CNY 170 000 per tonne in January, gaining nearly 30 percent since the start of the year to a two-year high, as signs of strong demand for power storage coincided with the outlook of capped supply.
Chinese authorities lowered export rebates for battery producers from April, driving manufacturers to front-run lithium orders.
In the meantime, ambitious bets in power and data centre infrastructure by the Chinese government were combined with the announcement of higher power storage spending, supporting the outlook for lithium and other battery metals.
This was combined with Beijing stating it would double EV charging capacity to 180 gigawatts by 2027, supporting lithium-rich energy storage systems.
Meanwhile, authorities stated 27 mining permits were cancelled in the lithium hub of Jiangxi, aligned with the earlier suspension of activity in CATL’s Jianxiawo lithium mine amid Beijing’s anti-involution campaign.
Platinum futures tumbled more than 10 percent to around US$2 570 an ounce, pulling back from a six-day rally that reached a historic record of US$2 878 on Monday.
Despite today’s drop, prices remain supported by a structural annual supply deficit, elevated lease rates in London, and potential incremental demand from China’s local currency platinum contracts.
Expectations of lower US interest rates and a weaker dollar, alongside ongoing geopolitical tensions, including President Trump’s recent tariff threats against Canada and South Korea, continue to underpin broader precious metals demand.
The market is now focused on the Federal Reserve’s two day policy meeting starting on Tuesday, with investors watching Chair Jerome Powell’s press conference amid concerns over the central bank’s independence.
