Metals trading remained relatively quiet on August 25, 2026, as market participants adopted a cautious stance ahead of tomorrow's Personal Consumption Expenditures (PCE) data release, according to market commentary from ADM Investor Services International Limited. In the precious metals complex, December gold contracts declined on profit-taking activity ahead of the PCE announcement. Market forecasts are anticipating headline PCE prices to rise 0.1% month-over-month and core prices to increase 0.5% month-over-month.
An in-line reading is expected to support gold prices through lower yields and reduced expectations for a September rate hike by the Federal Reserve. The broader risk environment remains shaped primarily by the PCE data and the Fed's Jackson Hole Symposium, with geopolitical concerns over Iran sanctions and US-Canada trade disputes generating limited market reaction. Silver September contracts declined 1.58% to settle at $67.50.
Base metals displayed mixed performance during the session. Copper on the LME added 0.2% to $14,296, while COMEX copper was essentially flat at $6.61. The market assessment suggests that recent price pullbacks reflect profit-taking rather than fundamental deterioration.
LME copper inventories had fallen nearly 50% between June and mid-August but subsequently recovered by 17%. This inventory rebound compressed the cash-to-three-month forward premium from $545 in mid-August to $71. However, available inventories remain constrained, with approximately 55% of total metal in the LME system on cancelled warrants.
Low inventory levels and persistent supply concerns continue to provide underlying price support. Among other base metals, zinc added 0.4% to $3,852, while tin rose 0.3% to $55,900. Aluminum declined 0.7% in official activity to $3,205, and nickel lost 0.6% to $16,920.
Lead, the primary metal used in battery applications, remained essentially flat at $1,911. Market pricing indicated a 40% probability of a Federal Reserve rate hike in September, with markets anticipating 26 basis points of total tightening through year-end. The persistent Middle East supply disruption related to Iran tensions continues to support oil prices and maintain upward-biased inflation risks.
Source: ADM Investor Services International Limited, written commentary by J.P. Steiner, August 25, 2026.
Source: admis.com