Gold and copper prices broke records on Monday after the sudden death of Iranian President Ebrahim Raisi in a helicopter crash unsettled markets and increased demand for safe investments.
Gold prices on the London metals market rose to about $2,450 per troy ounce (31.1 grammes), although they later experienced a slight dip.
The escalating trend in precious metal prices is also largely due to projected reductions in US Central Bank interest rates and Middle East unrest, particularly the ongoing conflict between Israel and Hamas. The People’s Bank of China also contributed by adding considerable quantities of gold to their reserves.
On Monday, copper prices surpassed $11,000 per tonne for the first time, driven by an expected increase in demand attributed to the energy transition and constrained supply. Copper is used extensively in electric infrastructure, including charging stations, wind turbines, and solar panels. Thanks to its broad industrial uses, it is often viewed as a barometer of the economy.
On a similar note, silver prices reached an 11-year high.
Meanwhile, unrest in New Caledonia, a key nickel-producing French overseas territory east of Australia, lifted nickel prices to their highest point since last August. Production of the metal, a primary component in stainless steel and batteries, has been disrupted due to significant riots on the archipelago.
