Gold has lost significant ground in recent weeks, but for Wells Fargo, this apparently changes little in the long-term picture. The US bank has reaffirmed its positive outlook for the precious metal and significantly raised its price target for the current year.

Today, the most-traded BC copper 2605 contract opened at 85,020 yuan/mt. Its center fluctuated upward and, after hitting a high of 84,940 yuan/mt, began to decline. Near the close, it touched a low of 84,260 yuan/mt and finally settled at 84,410 yuan/mt, down 0.09%. Open interest reached 6,279 lots, an increase of 157 lots from the previous trading day, while trading volume came in at 3,298 lots, a decrease of 1,106 lots from the previous trading day. On the macro front, a US Fed governor mentioned that interest rates could be cut gradually by 1 percentage point within a year, while Powell said energy shocks are usually short-lived and patience is warranted. After the remarks, the market priced in only about 3 basis points of rate cuts by year-end. Meanwhile, Iran’s parliament approved the imposition of strait transit fees, US-Iran talks continued, Trump threatened to strike Iran’s energy facilities if the talks collapsed, and Europe said Iran had armed the Houthis in the Red Sea conflict, though internal differences remained. The market was still trading these developments. Fundamentals, supply side, imported cargoes had continued to arrive recently, and overall spot circulation was relatively ample. Demand side, as a new monthly procurement cycle begins, the previously accumulated purchasing demand from downstream enterprises will be gradually released. The SHFE copper 2605 contract closed at 95,340 yuan/mt. Based on the BC copper 2605 contract price of 84,410 yuan/mt, its after-tax price was 95,383 yuan/mt. The price spread between the SHFE copper 2605 contract and BC copper was -43 yuan/mt. The spread remained inverted and narrowed somewhat from the previous day.

For almost four weeks, the war against Iran has kept the world on edge – a conflict that leaves deep marks not only geopolitically but also economically. Volatility and uncertainty in global markets are increasing daily.

SMM Morning Meeting Summary: Overnight, LME copper opened at $12,223/mt. In early trading, it saw wide swings and climbed to $12,278/mt. Subsequently, the center of copper prices moved straight downward to a low of $12,153.5/mt, before fluctuating widely again and finally closing at $12,195/mt, up 0.44. Trading volume reached 15,300 lots, and open interest stood at 295,000 lots, down 454 lots from the previous trading day. Overnight, the most-traded SHFE copper 2605 contract opened at 96,100 yuan/mt and hit a high of 96,240 yuan/mt in early trading. Subsequently, the center of copper prices gradually moved lower to 95,210 yuan/mt, before fluctuating rangebound and finally closing at 95,350 yuan/mt, down 0.05. Trading volume reached 36,500 lots, and open interest stood at 183,000 lots, down 2,394 lots from the previous trading day, mainly due to bulls reducing positions.

The gold price has undergone a sharp correction since its January high, unsettling many investors. The price decline of more than $1,000 per ounce appears at first glance to represent a break in the previous uptrend. However, according to analysts at WisdomTree, this movement reflects less a fundamental change in the macroeconomic situation than a combination of position adjustments, liquidity needs, and short-term market pressure.

Precious metals staged their first coordinated rally in nearly two weeks on Tuesday as the prospect of a diplomatic resolution to the U.S.-Iran conflict continued to lift market sentiment and weaken the dollar.