Summary
- US stocks hit fresh highs as Big Tech results loom.
- Copper stays above $11,000/t as sentiment supports base metals.
- Gold steadies near $3,970/oz as traders await Fed signals.
Macro
US equities opened higher, setting fresh record levels as investors entered the busiest week of the Q3 earnings season. Several major technology firms are due to report, and results from Big Tech are expected to shape sentiment on the durability of corporate margins amid slowing global growth. Later today, attention will turn to Nvidia’s CEO Jensen Huang, whose remarks at the company’s event are likely to draw scrutiny for clues on how the chipmaker plans to navigate tightening US export restrictions to China.
The dollar initially firmed before easing back towards 98.7, while US 10-year Treasury yields continued to trade below 4.0%, reflecting caution ahead of Thursday’s Federal Reserve decision. The dollar initially firmed before easing back towards 98.7, while US 10-year Treasury yields continued to trade below 4.0%, reflecting caution ahead of Thursday’s Federal Reserve decision. A 25bps cut is fully priced in, leaving investors focused on Chair Powell’s comments for guidance on whether another step would follow in December. Meanwhile, US consumer confidence slipped for a third month, falling from a revised 95.6 to 94.6, the weakest since April, suggesting household sentiment may be softening ahead of the holiday spending season.
On the geopolitical front, President Trump met Japan’s new prime minister, Sanae Takaichi, in Tokyo, underscoring a deepening strategic and economic partnership. The two leaders agreed to expand military cooperation and signed deals on trade and critical minerals, with Japan expected to channel fresh investment into US industries under a $550bn framework. This includes commitments in shipbuilding, energy, and agricultural imports such as soybeans, as the US seeks to offset reduced Chinese demand that has pressured domestic farmers and kept crop prices near multi-year lows.
Base Metals
LME base metals extended gains as improved risk sentiment continued to support prices. Aluminium climbed above $2,891/t, while copper held firm near $11,050/t, remaining within sight of its record high. Lead was steady around $2,025/t. Spreads continued to narrow for zinc, with the cash-to-three-month backwardation tightening to $130 and prices edging higher to $3,059/t. Tin also saw a narrower cash-to-three-month spread of $40, with the three-month contract advancing to $36,361/t. Nickel traded in a tight range, hovering around $15,300/t.
Precious Metals and Oil
Gold tested support near $3,900/oz before rebounding to around $3,969/oz, with traders watching for any shift in tone from the Fed that could set the next directional move. A firmer dollar or less-dovish policy stance could see renewed pressure on bullion, while any softening in US data may provide scope for a short-term recovery. Silver mirrored gold’s moves, dipping to $45.5/oz before bouncing above $47.1/oz.
Oil prices eased further, with WTI trading near US$60.5/bbl and Brent around US$64/bbl. Markets remain sceptical about the immediate impact of the latest US sanctions on Russian energy firms, as Russia continues to reroute flows via alternative channels. Consequently, near-term direction will likely be determined more by US inventory data and commentary from OPEC+ than fresh sanction headlines.
All price data is from 28.10.2025 as of 17:30