Precious metals are once again drawing investor attention amid renewed tensions in U.S.–China trade relations and shifting macroeconomic signals. As these developments unfold, gold and platinum are emerging as strong performers, while copper continues to struggle – a reflection of slowing global growth and weakened Chinese demand.* With this backdrop, traders are now watching closely for ways to turn this market volatility into opportunity.

Gold: On the path to a new ATH?

Gold entered the new trading week with relative calm during the Asian and European sessions, with futures hovering around $3,300, roughly $200 below its current all-time high.*

Looking back at last week, it’s worth noting Monday’s sharp rally, which was quickly offset by a comparable downward move later in the week. The decline was largely driven by stronger-than-expected U.S. Nonfarm Payrolls (NFP) data, a key labor market indicator. Positive employment data typically strengthens the U.S. dollar, which in turn pressures gold. However, this time the decline wasn’t as sharp as usual, highlighting the complexity of current price dynamics. Beyond macro data, geopolitical risks remain a major force shaping market sentiment.*

Gold price performance over the last five years

A silent outperformer hits a 4-year high

While gold often grabs headlines, platinum has quietly outperformed. Futures contracts rose by 2%, bringing prices to a 4-year high of $1,194 per ounce. The rally is driven by a tightening of supply alongside increasing demand, with a key technical breakout above the psychological resistance level of $1,100.* This breakout could signal a longer-term trend reversal, positioning platinum as a strong candidate for continued gains in the coming months.

Platinum price performance over the last five years

A clear signal of Chinese weakness

On the other end of the spectrum lies copper, commonly viewed as a global economic barometer. Imports into China, the world's largest copper consumer, fell by 18% in May, compared to April. This sharp drop reflects multiple factors.* Increased U.S. tariffs, sluggish domestic demand, and broader consumer weakness in China. These developments reinforce the notion that China’s economic engine is cooling, which could keep pressure on copper in the short to medium term.

Copper price performance over the last five years

Geopolitical context and what lies ahead

All of this unfolds against the backdrop of critical U.S.–China trade negotiations, which began Monday in London. The goal? De-escalate trade tensions and work toward a longer-term agreement, one that could very well impact on the metals market. While it's unclear how or when precious metals might factor into a finalized deal, traders should remain alert. Geopolitical developments could trigger rapid price moves, and being prepared to act on these signals will be key to navigating the weeks ahead.

Bottom line for traders

In an environment defined by uncertainty and shifting fundamentals, precious metals continue to offer both opportunity and risk. Whether you're looking to hedge, diversify, or trade short-term moves, aligning with the prevailing macro and geopolitical themes will be essential.

* Past performance is no guarantee of future results.