Copper hits record $6.70/lb as commodities diverge on Strait of Hormuz reopening
This digest was compiled by AI from multiple sources — links to the originals are below.
Copper hit an all-time high of $6.70 per pound on August 6, and gold surpassed $4,300 an ounce, as the partial reopening of the Strait of Hormuz sharply divided commodity markets. Oil tumbled on easing supply fears, while metals surged on falling inventories and tariff-driven U.S. imports.
Copper and Base Metals
Copper prices on the LME hit an all-time high of $6.70 per pound, up over 8% in August, as inventories continued to fall and U.S. imports surged to a more than decade-high ahead of potential tariffs. The disruption at Codelco’s El Teniente mine in Chile added to supply concerns, while zinc and aluminum also gained on the back of a weaker dollar. Nickel, however, remained under pressure from oversupply fears.
Precious Metals Rally
Gold rose for a fourth consecutive session to $4,300 an ounce, posting a nearly 6% weekly gain after a weaker-than-expected U.S. ADP jobs report for July showed only 44,000 new positions. Silver held near $62, with both metals recovering from earlier lows but still below January peaks. Platinum gained 6% in August to $1,760, while palladium surged more than 7% to $1,375, supported by falling yields and renewed cyclical demand.
Energy and Agriculture Divergence
Oil prices fell sharply after the partial reopening of the Strait of Hormuz eased supply disruption fears, with Brent crude dropping below $75 per barrel. In agriculture, wheat prices weakened despite a 6% monthly gain as U.S. crop conditions improved, while corn held near four-week lows on forecasts of a record U.S. harvest. Sugar approached a monthly high on deficit concerns and weak monsoon risks in India, but coffee remained under pressure from a record USDA production outlook.
What's Next
The U.S. Federal Reserve’s next policy decision is due in September, with markets now pricing fewer hikes after the ADP data and oil decline. It remains unclear whether tight copper supply and tariff threats will sustain the metal’s rally amid uncertain Chinese demand.
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Copper hits record $6.70/lb as commodities diverge on Strait of Hormuz reopening
