Metals are unprecedentedly leading market headlines on Monday as prices of some contracts flew higher than expected.
In the latest update on iron ore, futures contract surged as much as 10% in Singapore and hit a record high of $226.00 a tonne within minutes.
Only last week did the contract surged past the $200.00 a tonne for the first time. By then, analysts predicted that the price has already hit its highest and will take the turn for a retracement.
On the other hand, such an assumption did not happen and the price continued to balloon to reach its current settlement.
According to experts, the recent hike is primarily brought by the usual catalyst which is China.
The world’s second-largest economy increased on steel demand in the past weeks along with infrastructure and development upgrades.
Currently, supply outweighs demand with no end yet in sight. Analysts are apprehensive about whether the current trend will last until the end of the year.
Meanwhile, it is not only iron ore that is surprising the market. Traders’ favorite, copper, hits all-time high again.
The metal’s three-month futures hiked to $10,747.50 a tonne at one point of the session before easing back to the $10,600.00 threshold. This is the highest recorded so far since 2011.
In a price projection for the coming weeks, commodity experts that the $11,000.00 price threshold is now brighter than ever.
Consequently, futures contract for June delivery in the Shanghai Metal Exchange are also on the same trajectory and hit $12,094.62 a tonne.
Analysts noted that the demand for the precious metal will rise further in the coming months amid the increased economic activities across countries.
Gold Futures Approaches $1,900
It was not even a week after the gold price hit $1,800.00 an ounce but the contract is already advancing very fast towards the $1,900.00 threshold.
In the latest charts, the bullion added a conservative gain and steadied above $1,830.00 an ounce.
Analysts are convinced that the consolidation of positive momentum within the week could easily support prices on the upside.
The current level of resistance is found around $1,850.00. Should more buyers join in during such a level, the $1,900.00 an ounce level could be breached by next week.
Market spectators are currently monitoring the growing inflation fears in the overall trading area.
This comes a week after US Treasury Secretary Janet Yellen said that a rise in interest rates should now be accommodated.
