Shares in London's mining heavyweights and US stock futures rose in early Monday trading, buoyed by renewed optimism about US-China trade relations, sending gold and silver prices sliding as the day wore on.
Ahead of a meeting between Presidents Donald Trump and Xi Jinping later this week, a "substantial framework" for trade talks was said to have been reached between the two countries, ahead of a meeting between Presidents Donald Trump and Xi Jinping on Thursday in South Korea.
US Treasury Secretary Scott Bessent said President Trump’s recent threat of a 100% tariff was "off the table" and that he believed Beijing was pausing its planned expansion of rare earth export controls for at least a year.
Financial markets see the US and China "inching closer to a trade deal", said market analyst Ipek Ozkardeskaya at Swissquote Bank, noting reports suggesting the two sides have reached an initial agreement on issues including export controls, shipment levies and fentanyl.
"If this deal happens – then hold onto your hats," said analyst Kenny Polcari at Slatestone Wealth.
Copper prices rose 1.35% and Chinese iron ore prices were up 0.3% in early deals.
This sent Glencore PLC (LSE:GLEN) and Antofagasta PLC (LSE:ANTO) shares both up just over 1.5% in the first hour of trading, while Anglo American PLC (LSE:AAL) and Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) rose a little below 1%.
By the late afternoon, copper prices had given back some gains, while gold prices fell 2.9% and silver was down 3.8%, hitting the likes of Fresnillo PLC (LSE:FRES) and Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF).
** UPDATE: Adds details, updates commodity prices **