Commodities are volatile again
Gold had its worst month since 2008 in March while copper hit record prices despite high inventories—creating procurement headaches for jewelry, capex and wiring buys. Analysts warn geopolitical risk and tech demand are driving swings that complicate forward purchasing and budgeting. (cnbc.com) (markets.financialcontent.com)
Spot gold closed near $4,582.45 per troy ounce on March 31, 2026, representing a roughly 13.9% decline over the month. (tradingeconomics.com) Front-month gold futures fell about 13.54% between March 3 and March 31, 2026 as the U.S. dollar strengthened and Treasury yields rose amid Iran-war-driven energy shocks that pushed markets to price higher Fed-rate expectations. (ebc.com) Fine‑jewelry makers reported that spot gold had peaked in late January in the high‑$5,000s per ounce, prompting design and pricing changes among independents that lack the hedging capacity of larger houses. (prismnews.com) Global copper was trading around $12,220 per metric tonne at the end of March 2026 even as combined exchange inventories across LME/SHFE/COMEX topped about 1.1 million metric tonnes, a 23‑year high. (markets.financialcontent.com) The market's supply concerns include a September 2025 mudslide that disrupted output at Indonesia's Grasberg mine and an AI‑led demand surge for data‑centre wiring and transformers that helped push intraday copper spikes above $14,500/tonne in January 2026. (markets.financialcontent.com) U.S. trade policy added cost pressure when a Presidential Proclamation under Section 232 imposed a 50% tariff on semi‑finished copper imports effective August 1, 2025, changing landed‑cost math for wiring and fittings. (federalregister.gov) Procurement publications and contractors reported copper costs passing $13,000/tonne and forcing contract re‑quotes, hedging and material‑substitution conversations across electrical, HVAC and capex projects. (procurementmag.com)
