Commodity markets: Copper soars as gold and silver cool off

Global commodities markets shifted sharply overnight as crude oil slid to a four‑month low, while copper surged to its strongest level in two months amid tightening supply concerns. Gold and silver retreated from recent peaks as investors booked profits after a period of heavy buying.

Oil hits four‑month low

Brent and WTI benchmark prices fell more than 2 per cent, extending a broad sell‑off that has left crude at its weakest since early summer. The decline came as OPEC+ signalled it may raise output in November by as much as 500,000 barrels a day.

Saudi Arabia has already restored some of the supplies it previously suspended, while Iraq is preparing to restart Kurdish exports. At the same time, US data showed a build‑up in crude and gasoline inventories, reinforcing concerns of oversupply.

The move added to risk‑off sentiment across financial markets as political paralysis in Washington pushed the government shutdown into its second week. Some support came from China, where authorities continued to build up strategic reserves through direct purchases.

Precious metals retreat from peaks

Gold slipped from its record of $3,897 an ounce, easing on profit‑taking after a sustained rally driven by global macro uncertainty.

Both markets had surged in recent weeks as investors piled into defensive assets, betting on prolonged economic uncertainty and a weaker US growth outlook.

Gold headed for a seventh weekly advance, as the US government shutdown added another layer of uncertainty for investors seeking signals on the Federal Reserve’s monetary-easing path.

Gold has soared more than 45% this year in a rally, with prices now on track for the biggest annual gain since 1979, according to a Bloomberg report.

Silver also eased from $48.06, but prices remain close to all‑time highs as strong investor demand provided a floor.

Copper buoyed by supply shocks

Copper futures climbed to a two‑month high, buoyed by supply disruptions in some of the world’s largest producing nations. Chile reported a near 10 per cent year‑on‑year decline in August output, while state‑owned giant Codelco announced a suspension of mining and smelting at its El Teniente site.

Separately, Indonesia said production at the Grasberg mine had been curtailed, removing an estimated 3 per cent of global supply from the market.

Tightening availability coincides with Beijing’s policy drive to rein in excess capacity and over‑investment in heavy industry, raising expectations of a leaner supply‑demand balance.