Commodities Overview: Oil Prices Fall, Gold, Copper, and Aluminum Rise, Market Watches Trump Speech

Due to market expectations that the United States may send signals that the Iran war could be coming to an end, oil prices fell on Wednesday, while gold and copper rose. Aluminum continued to climb as production in the Middle East remained disrupted. Investors are closely watching a speech Trump is set to deliver later this evening local time, looking to find clues about where the Middle East conflict is headed.

** Oil: WTI Falls; Traders Focus on Trump’s Remarks About the Iran War**

Oil fell with sharp swings during the session, as traders watched to see whether U.S. President Donald Trump would announce that the Iran war would end soon.

WTI futures fell 1.2%, with the settlement price slightly above $100 per barrel, after dropping as much as about 4.8% earlier.

On Wednesday morning, Trump said in a post on his Truth Social platform that Tehran has submitted a ceasefire request. The news weighed on oil prices. However, Iran responded that it would not reopen the waterway due to the “absurd actions” of the U.S. leader, adding that the future of this key channel will be decided by Iran and Oman.

White House officials said that in a speech on Wednesday evening in the gold time slot, Trump will say that he has achieved success in Iran’s military operations and emphasized that the operation could end within two to three weeks.

“Everyone is holding their breath for tonight’s news, ready to hit the buy and sell buttons at any moment,” Enverus oil and gas analyst Carl Larry said. “There aren’t many opportunities for a big drop in oil prices, but right now everything is possible. $100 is the key level—we’ll trade around this level until the next key piece of news comes in.”

May WTI futures fell 1.2%, with the settlement price at $100.12 per barrel.

June Brent futures closed down 2.7% at $101.16 per barrel.

** Precious Metals: Gold Extends Its Rally**

Gold prices continued their three-day rally on Wednesday, as traders waited for Trump to issue signals regarding a possible end to the Iran war.

On Wednesday, gold prices rose as much as 2.7%, approaching $4,800 per ounce. Building on the prior trading day’s 3.5% gain, prices moved higher again.

Trump will deliver a nationwide address on Wednesday evening during the gold time slot on this Middle East conflict, now in its fifth week. A White House official who asked not to be named said that in the speech, Trump will claim that military operations in Iran have been successful and emphasize that the operations could end within two to three weeks.

Bond traders are now dialing back bets, no longer believing that central banks will raise interest rates as a way to curb the inflation risks brought about by the conflict. Instead, they are focusing on the war’s impact on economic growth. Federal Reserve Chair Powell earlier this week said that longer-term inflation expectations remain stable.

Goldman Sachs is one of the institutions that continues to view gold bullish. In a report published on Wednesday, the firm maintained its year-end price target of $5,400 per ounce, noting that central banks continue to buy and that the U.S. is expected to cut rates twice this year.

As of 3:30 p.m. Eastern Time

Gold spot rose 2.1% to $4,767.29 per ounce.

Silver spot rose 0.4% to $75.4765 per ounce.

** Base Metals: Copper and Aluminum Rise**

Copper prices rose on Wednesday. After Trump said the Iran war could end within two to three weeks, risk assets that had been under pressure earlier due to worries about economic growth saw a relief rebound.

After Trump made the above remarks, prices rose as much as 1.3%. Copper prices had fallen nearly 8% in March.

At the same time, aluminum prices continued to climb. Insider sources said that after Iranian missiles and drones attacked its Tavilara smelter over the weekend, Emirates Global Aluminum—the Middle East’s largest aluminum producer—has halted operations at the facility.

As of the London market close

LME copper futures rose 0.8% to $12,434.5 per ton;

LME aluminum futures rose 1.9% to $3,531.5 per ton;

LME nickel futures rose 0.6% to $17,209 per ton;

LME zinc futures rose 2% to $3,289.5 per ton;

LME tin futures rose 1.3% to $47,362 per ton;

LME lead futures rose 2% to $1,941.5 per ton.

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责任编辑：李桐