Gold climbed to over US$2,830 ($4,542) an ounce overnight, notching a fresh high as investors flock to safehaven assets over elevated concerns of a global trade war.
The precious metal was up 0.5% to around US$2,814 an ounce on Tuesday (4 February).
Other commodities also staged a recovery after US President Donald Trump said he would delay placing tariffs on Mexico imported goods by a month.
The ANZ China Commodity Index was back up 0.3%, as precious metals advanced 0.9%, industrial metals rose 0.7% and bulks lifted 0.1%.
Zinc moved the most with a 2.1% gain to US$2,799 a tonne, while aluminium rose 1.1% and copper added 0.6%.
“Concerns eased after Mexico’s President Sheinbaum said the tariffs on her country’s exports will be delayed for a month after a conversation with Trump,” ANZ Economist Madeline Dunk says.
“In return, Mexico will send 10,000 National Guard officers to the border to help stem the flow of fentanyl and migration to the US. This saw a reversal in the base metals sector, with copper ending the session in the positive.”
Meanwhile, the US aluminium industry wants Trump to exempt the sector from proposed tariffs in a bid to protect jobs and domestic manufacturers.
“The US industry is heavily reliant on imported aluminium, with imports making up around 44% of total metal consumed in 2023,” Dunk says.
Equities markets also rebounded on Tuesday, with the S&P/ASX 200 adding back 48.7 points, or 0.58%, to reach 8,428.1 points as of 10.30 AEDT.
The index has gained 0.35% over the past five days and is sitting 1.62% below its 52-week high.
Eight of the 11 sectors were in positive territory in early trade, led by materials with a 0.35% advance. The sector is 0.2% lower for the past five days.
Utilities rose 0.34%, while energy and industrials both edged up 0.07%.
Mineral Resources (ASX:MIN) landed in the top five shortly after the opening bell with a 3.36% gain to $34.19.
Arcadium Lithium (ASX:LTM), however, lost some of its recent gains to trade down 1.71% at $9.18.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Unsplash
