Precious Metals Fall as Industrial Metals Rally Globally

Tashkent, Uzbekistan (UzDaily.com) — The metals sector remained one of the most volatile segments of the commodity market in early June, showing divergent trends between precious and industrial metals, according to an analytical review by Alpari expert Anna Bodrova.

The analyst noted that precious metals are under pressure from macroeconomic conditions in the United States, including strong labor market data and expectations that the Federal Reserve will maintain high interest rates. This has reduced gold’s appeal as a safe-haven asset.

Gold fell below the US$4,500 per ounce mark and continues to decline after a spring rally.

Additional pressure on the market is being driven by expectations of continued tight monetary policy, as well as geopolitical factors linked to developments in energy markets and inflation risks.

Silver is also declining, trading around US$75 per ounce.

In contrast, industrial metals are showing sustained growth. Aluminum rose above US$3,780 per ton, reaching multi-year highs amid expectations of supply disruptions and export restrictions in certain regions.

Copper hit an all-time high above US$6.65 per pound. Over the past month, prices have increased by nearly 15%, and by more than 37% over the past year. The rally is supported by strong demand from the energy, construction, and technology sectors, as well as expectations of possible tightening of US trade policy on copper imports.

An additional driver of growth in the industrial segment is constrained supply and active inventory accumulation amid global market uncertainty.

The NYSE Arca Steel Index also reached a new all-time high, surpassing 3,500 points, indicating sustained investor interest in the steel sector.

According to the analyst, precious metals remain sensitive to Federal Reserve policy decisions and dollar dynamics, while industrial metals are supported by structural demand and limited supply, forming the basis of the current rally in the metals market.