Tashkent, Uzbekistan (UzDaily.uz) — As of 23 September, the metals market is moving in different directions. Precious metals remain under pressure from expectations of tighter Federal Reserve policy, although lower oil prices have reduced inflation risks.
Industrial metals look more resilient: copper is holding near record highs, zinc remains near strong levels, while aluminum is balancing low inventories against expectations of a recovery in supply.
Gold is trading at around US$4,335 per ounce, while silver is around US$66.4 per ounce. Both metals have so far failed to establish sustained growth after the September correction. The main reason appears to be that the market continues to price in a scenario of “higher rates for longer.”
Last week, the Federal Reserve raised its rate by 25 basis points and signaled that another increase by the end of the year remains possible. This is an unfavorable backdrop for gold and silver: a stronger dollar and high bond yields make non-yielding assets less attractive.
At the same time, pressure on precious metals is not one-sided. Oil prices fell below US$100 a barrel amid expectations of improved supplies from the Middle East and possible progress around the Strait of Hormuz.
This has reduced fears of another inflation shock and provided some support for gold. However, as Federal Reserve officials continue to point to inflation risks, investors are in no rush to return to safe-haven assets. As a result, gold is holding above US$4,300 but lacks strong upward momentum.
Platinum is trading at around US$1,815 per ounce, while palladium is near US$1,300 per ounce. Platinum looks more resilient due to its structural fundamentals: the market continues to factor in limited supply and demand from hybrid vehicles, hydrogen technologies and new industrial applications.
Palladium remains weaker. It is supported by broader interest in precious metals, but in the longer term it faces pressure from the growth of electric vehicles and the gradual substitution of palladium with platinum in automotive catalysts.
The main story in the industrial segment is copper. Prices are holding around US$6.75 per pound and are again close to their peaks. Support is coming from strong Chinese purchases, limited metal availability and the impact of shifting trade flows due to possible US tariffs. What matters for copper now is that demand is coming not only from traditional industry but also from long-term trends such as data centers, artificial intelligence, power grids and the energy transition.
Zinc remains around US$3,890 per tonne and continues to look like one of the strongest metals in the industrial group. After a sharp rise in early September, the market has cooled somewhat, but the fundamental picture remains tight. Inventories are low, while disruptions to mining and processing in China and among major global producers are preventing the market from quickly returning to a supply surplus. In such conditions, even moderate demand can keep prices at high levels.
Aluminum is trading at around US$3,260 per tonne. The market looks calmer than copper and zinc, but it cannot be described as weak.
On the one hand, some concerns over supplies from the Persian Gulf have eased, while investors are awaiting a recovery in production at certain facilities. On the other hand, warehouse inventories remain low, and the physical market is still sensitive to any new logistical disruption. As a result, aluminum is currently holding its ground rather than beginning another strong rally.
Overall, the metals market at the end of September is operating in two different modes. Precious metals are driven by the Federal Reserve, the dollar, yields and oil-related inflation. Industrial metals are more focused on actual inventories, Chinese demand and long-term demand for raw materials for energy and technology.
Therefore, even when macroeconomic factors periodically weigh on the entire sector, copper, zinc and aluminum continue to draw support from segments where physical metal remains in short supply.
