Tashkent, Uzbekistan (UzDaily.uz) — The metals market ended September closely tied to the dollar, bond yields and expectations for the Federal Reserve. Global bonds are closing the month with a sharp sell-off, while yields in the United States and Europe remain near multi-year highs and the dollar is strengthening and becoming more expensive. This creates a challenging backdrop for precious metals: investors are not abandoning safe-haven assets entirely, but high bond yields are making gold and silver less attractive.
Gold is trading at around US$4,170 per ounce after falling to a more than seven-week low. Silver is holding slightly above US$61 per ounce and also remains under pressure. Metals fell sharply at the start of the week as oil prices rose and new inflation concerns emerged, but later stabilized after oil prices declined and Federal Reserve officials made dovish comments. The market is no longer as confident that an immediate rate hike in October is likely, although the issue has not disappeared entirely: inflation remains high, while the Federal Reserve continues to signal its readiness to take a tougher stance if necessary.
The situation for gold is particularly contradictory. On one hand, geopolitical and debt risks are supporting demand for safe-haven assets. On the other, geopolitics is driving oil prices and inflation, thereby increasing expectations for higher interest rates. As a result, gold has been unable to quickly return to growth. Buyers are emerging around US$4,000-4,150 per ounce, but each new rise in yields again limits the recovery. Silver appears even more volatile in this environment, as it is more sensitive to both interest rates and industrial demand.
Platinum and palladium remain weaker than gold. Platinum is trading at around US$1,700 per ounce, while palladium is at about US$1,210-1,220 per ounce. Both metals are being weighed down by the strong dollar and overall investor caution. At the same time, platinum appears fundamentally more resilient, with the market still factoring in a supply deficit and demand from hybrid vehicles. Palladium remains under greater pressure because the long-term increase in the share of electric vehicles and the substitution of palladium with platinum in automotive catalysts are limiting expectations for consumption.
The main story in the industrial metals segment is copper. Prices are holding around US$6.60 per pound, close to the September record high of about US$6.85. Copper has changed little over the month but is still up more than 35% over the year. The market is supported not only by long-term demand from the energy sector, power grids, data centers and artificial intelligence. Trade flows are also playing an important role: expectations of US tariffs continue to draw metal into the United States, while China is simultaneously building up inventories. This creates the impression that less readily available metal is left outside the largest buyers.
Zinc remains one of the strongest metals this autumn. The price is holding around US$3,860 per tonne after recently rising above US$4,000, its highest level in several years. The market is responding to actual supply disruptions: production in China has declined, some capacity is undergoing maintenance, and exchange inventories remain low. As a result, even after retreating from its peaks, zinc does not appear weak. Buyers understand that physical metal is not as freely available as they would like.
Aluminum is trading at around US$3,250 per tonne and is moving more calmly than copper and zinc. On one hand, some concerns over supplies from the Persian Gulf have eased, while the market expects production to gradually recover. On the other hand, inventories remain extremely low, preventing prices from entering a deep correction. The key issue for aluminum is the balance between supply and demand: if supplies do indeed recover faster, the market could cool, but a new logistical disruption could quickly bring the shortage back into focus.
Overall, as of 30 September, the metals market is being driven by two major themes. Precious metals are under pressure from the strong dollar, high yields and Federal Reserve expectations. Industrial metals depend more on the actual availability of raw materials, trade flows and long-term demand from the energy and technology sectors. As a result, gold and silver are still searching for support, while copper, zinc and aluminum continue to hold up on physical supply constraints and structural demand.
