Gold prices extended their gains further on Friday, primarily driven by a weaker US dollar and a statement from Iran's foreign minister that the Strait of Hormuz would remain open during the ceasefire. This news pushed oil prices lower and eased some market concerns about inflation. During Friday's US trading session, spot gold rose nearly 2%, briefly approaching $4,900. Iranian Foreign Minister Araghchi posted that vessels passing through the strait would follow coordinated routes already published by Iran's Ports and Maritime Organization. US President Trump said he believed a deal to end the Iran war would be reached "soon," although the specific timetable remained unknown. Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, said: "The reopening of the strait is a pivotal event. With oil prices under pressure, this is expected to ease inflation concerns and reignite expectations for interest rate cuts — all of which is genuinely positive news for gold." He added that gold prices could return above $5,000 per ounce in the near term . Following the comments about the opening of the Strait of Hormuz, the US dollar and oil prices extended their declines. A weaker dollar made gold more attractive to buyers holding other currencies. The move also boosted market expectations for a US Fed interest rate cut before the end of the year. Traders currently see roughly a 60% probability that the US Fed will cut its benchmark interest rate before December. Gold prices had briefly declined after the US and Israel launched strikes on Iran in late February, as surging energy prices intensified inflation concerns, prompting markets to scale back expectations for interest rate cuts. Since gold itself generates no interest, it typically loses some of its appeal when borrowing costs stay high. Meanwhile, according to trade sources, Indian banks have suspended placing gold and silver orders with ex-China suppliers as the government has yet to issue official documents authorizing imports, leaving several metric tons of precious metals stranded at customs.

In the spot market, the price center of lead shifted slightly upward this week (April 13-17, 2026). Downstream buyers mostly made just-in-time procurement on demand and restocked on dips, with weak purchase willingness at high prices. Overall transactions in the spot market eased slightly WoW. This week, mainstream transaction prices of primary lead in Henan maintained parity or a slight discount against SMM #1 lead. Traders offered at a discount of 180-130 yuan/mt against the SHFE lead 2605 contract. At the beginning of the week, smelters held back from selling at low prices, and spot orders were limited. In Hunan, prices gradually shifted from a discount to parity or a slight premium during the week, with some plants holding prices firm on shipments after their inventory was sold out. In Guangdong, suppliers maintained offers at a premium of 25-100 yuan/mt against SMM #1 lead, with transactions supported by just-in-time procurement.

This week, the e-bike and automotive battery replacement market was in a traditional off-season state. Dealers only purchased as needed, and some enterprises reported weakening orders and reduced production. In terms of battery selling prices, there were no sales promotions as typically seen during the off-season in previous years, mainly due to rising raw material costs. Apart from rising lead prices, prices of other auxiliary materials also trended upward. In particular, sulphuric acid prices surged significantly since late March, with smelting-grade sulphuric acid prices rising by over 50%, and quotes in some regions approaching 2,000 yuan/mt. In addition, lead prices fell first and then rose this week. At the beginning of the week, downstream enterprises purchased as needed on dips, and market transactions were moderate. In the second half of the week, lead prices rose, and most downstream enterprises adopted a wait-and-see approach with cautious purchasing, with spot market transactions remaining sluggish.

According to SMM, from April 10 to April 16, 2026, the weekly comprehensive operating rate of lead-acid battery enterprises across five provinces was 69.66%, up 2.38 percentage points WoW. With the impact of the Qingming Festival holiday dissipating, lead-acid battery enterprises gradually resumed production this week. However, as the end-use market was in the traditional consumption off-season, battery orders at some enterprises weakened, and they once again lowered their production line operating rates. Therefore, the weekly operating rate of lead-acid batteries recovered somewhat this week but remained difficult to restore to pre-holiday levels. Currently, battery markets for e-bikes, automobiles, and other sectors are all in the off-season, with dealers purchasing cautiously. To ease inventory pressure, most producers adopted a produce-based-on-sales approach and scaled back production plans. If orders continue to remain sluggish going forward, some enterprises will consider further production cuts.

[Enterprises Resumed Production, Weekly Operating Rates of Die-Casting Zinc Alloy Rose] This week, terminal hardware factories slowed down their procurement and cargo pick-up pace, and die-casting zinc alloy enterprises saw fewer shipments. However, as some enterprises halted production during the week due to factory relocation, finished product inventories remained basically flat compared with last week. The rise in operating rates this week was mainly driven by enterprises that were on holiday last week resuming production this week, pushing operating rates higher...

[Orders Showed Marginal Improvement, Zinc Oxide Operating Rates Rose] Driven by marginal improvement in downstream orders, the industry's operating rate edged up this week...

[Galvanizing Plant Operating Rates Rose]: The operating rates of galvanising producers stood at 62.13% this week, up 4.24 percentage points WoW. Raw material side, zinc prices fluctuated at highs throughout the week, with downstream players picking up fewer goods and mainly consuming existing stocks, leading to a decline in zinc ingot inventory at galvanising enterprises.

According to Reuters, trade sources said that Indian banks had suspended orders for importing gold and silver from suppliers outside China, with large quantities of precious metals stuck at customs , as the government had yet to issue a formal order authorizing the import of these precious metals. As India is the world's second-largest gold consumer and the largest silver buyer, with nearly all of its demand relying on ex-China purchases, the country could face a supply deficit without new imports. Weak Indian demand could weigh on global gold and silver prices , while narrowing the country's trade deficit and supporting the rupee. The rupee has been one of Asia's worst-performing currencies so far this year. Authorities had taken several measures to ease pressure on the rupee, including recently urging refiners to limit their spot dollar purchases. The suspension of gold and silver import orders by Indian banks from overseas suppliers, as well as the backlog of large quantities of precious metals at customs due to the lack of a formal government authorization order, had not been previously reported. The Directorate General of Foreign Trade (DGFT), under India's Ministry of Commerce and Industry, typically issues an order at the beginning of each fiscal year listing the banks authorized by the Reserve Bank of India to import gold and silver. The order previously issued in April 2025 was valid until the end of the last fiscal year (March 31), and banks were currently awaiting a new directive from the DGFT. The DGFT did not immediately respond to Reuters' request for comment. A bullion dealer at a private bank in Mumbai said that banks had expected the DGFT to issue the order in early April as in previous years, but no new announcement had been made so far, resulting in more than 5 mt of gold stuck and unable to clear customs . The dealer said the uncertainty over the timing of the DGFT order had led banks to suspend new import orders from overseas suppliers. The dealer requested anonymity as they were not authorized to speak to the media. Sources said that approximately 8 mt of imported silver was also stuck and unable to clear customs . Another bullion dealer said there was no point in placing new orders when previous shipments could not clear customs. According to data from the World Gold Council, India's gold demand fell to 710.9 mt in 2025, the lowest level in five years. Sources said that gold and silver inventory imported in previous months was being depleted, and the market was now relying on sales from exchange-traded funds, which were facing redemptions. Mehta Surendra, Secretary of the India Bullion and Jewellers Association, said: "Clear rules are needed to ensure imports resume." Mehta stated that without imports, a supply deficit would emerge, and premiums would rise after Akshaya Tritiya, India's second-largest gold-buying festival. A bullion dealer in Kolkata said that as the Iran conflict drove up prices of oil, natural gas, and fertilizers, India's import bill in April could rise, which might prompt the government to slow down gold and silver imports to control the trade deficit.

[SMM Copper Wire and Cable News] This week, the SMM copper wire and cable enterprise operating rate was 69.43%, up 0.95 percentage points WoW. The stabilization in operating rates was mainly driven by orders from top-tier enterprises, while small and medium-sized enterprises continued to underperform. The power sector provided notable support, with steady demand from computing power, AI, and new energy sectors. Looking ahead to next week, high copper prices are expected to suppress new orders, and as earlier backlog orders are gradually completed, the operating rate is expected to pull back slightly. However, State Grid's successive order placements will provide support, and SMM expects the operating rate to decline 0.57 percentage points WoW to 68.86%.

[SMM Copper Wire and Cable Inventory] Regarding copper wire and cable inventory this week, enterprises' raw material procurement remained driven primarily by rigid demand. Some enterprises held bullish expectations for subsequent copper prices and restocked in small quantities across multiple batches at relatively low price levels, resulting in a 1.08% WoW increase in raw material inventory. On the finished product side, some clients also had bullish sentiment, and coupled with State Grid placing orders and picking up goods, finished product inventories decreased slightly by 1.74%.