Metals & Mining Monitor | Gold's 4-Week Winning Streak Continues; BHP to Lead Copper Production

Gold: On April 12th, gold prices surged once again as $Gold Futures(JUN4)(GCmain.US)$ reached a new milestone of $2400 per ounce, peaking at $2448.8. This marks the fourth consecutive week of growth, setting new historical highs. The main reason for this surge is the increased likelihood of drone or missile strikes by Iran or its proxy groups on government and military infrastructure targets in Israel. As geopolitical tensions rise, investors are increasingly turning to gold and other safe-haven assets. Additionally, higher inflation and the cost of living in many regions have eroded the value of money, prompting individuals to seek out inflation hedges, with gold being a preferred choice.

Silver: $Silver Futures(JUL4)(SImain.US)$ has continued its upward trajectory, reaching a three-year high at $29. While its gains have historically been overshadowed by gold's impressive returns, silver has outperformed gold in August. Investors are increasingly turning to silver as an alternative asset to capitalize on economic resilience, mitigate geopolitical risks, and hedge against rising inflation.

Copper: The price of $Copper Futures(JUL4)(HGmain.US)$ has continued to surge, reaching its highest level since June 2022. Investors are betting that the reduced ore supply will struggle to meet the increasing global demand. Copper has maintained a strong position following a mine-supply shock that occurred late last year. The better-than-expected consumption, as global manufacturing usage picks up, has also contributed to the rise in prices. Additionally, investors have started to shift towards commodities as a hedge against renewed inflation fears, further boosting copper prices.

Bold Baatar has been appointed as the new Chief Commercial Officer for $Rio Tinto Ltd(RIO.AU)$. This follows the retirement of Alf Barrios from the company. Baatar, chief executive copper, will take on the role of business development immediately and will relocate to Singapore for the new position, effective from September 1st. Barrios will continue in his role as Chief Commercial Officer until the end of August. He will then serve as Chair for China, Japan, and Korea, as well as an executive committee member until his retirement at the end of the year.

As long as $BHP Group Ltd(BHP.AU)$'s giant Escondida mine in Chile continues to step up production, the Australian company will nudge past Codelco this year, disrupting the Chilean state-owned behemoth’s reign as No. 1, said Bloomberg Intelligence analyst Grant Sporre. Still, Codelco may recover the top spot in the years ahead as it battles to recover from delays and missteps at its projects.

$Northern Star Resources Ltd(NST.AU)$ raised its annual cost guidance after bad weather affected its operations in recent months, but said it was confident of meeting expectations for gold sales. Northern Star said it now expected all-in sustaining costs of between 1,810 Australian dollars (US$1,179) and A$1,860 per troy ounce of gold in the 12 months through June. That was above prior guidance for AISC of A$1,730-1,790/oz.