Metals experienced a near across-the-board decline, with LME nickel dropping over 2%. The upward trend in gold prices temporarily paused, but there may still be support in the subsequent period? [Overnight Market]

SMM April 27 News:

Metal Market:

Overnight Friday, both domestic and overseas metal markets mostly declined, with only LME tin and SHFE aluminum rising, up 0.67% and 0.08% respectively. LME nickel led the losses with a 2.09% drop, followed by SHFE nickel (down 1.22%), LME zinc (down 1.56%), while other metals fell less than 1%. Alumina main contract dropped 0.42%.

Ferrous metals series showed mixed performance, with iron ore down 1.33% and stainless steel down 0.31%. HRC and rebar both rose over 1%, gaining 2.21% and 1.67% respectively. For coking coal and coke, coking coal fell 0.42% while coke dipped 0.25%.

Precious metals: COMEX gold fell 0.55% overnight Friday but edged up 0.05% weekly, pressured by a stronger US dollar and weaker safe-haven demand. COMEX silver dropped 1.43% overnight but rose 1.71% weekly. Domestically, SHFE gold declined 0.77% overnight Friday but gained 0.22% weekly, while SHFE silver fell 0.93%. TD Securities commodity strategist Daniel Ghali noted that tariff tensions easing negatively impacted gold prices, but large-scale position unwinding hasn’t been observed yet. However, he added that investors continued bargain-hunting in recent sessions, suggesting gold could resume its upward trajectory.

Overnight Friday closing prices as of 9:04 AM April 27:

》Click to view SMM futures dashboard

Macro Front:

Domestic:

【CPC Politburo Holds Meeting to Analyze Current Economic Situation and Work】 The meeting emphasized adhering to the general principle of seeking progress while maintaining stability, fully and accurately implementing the new development philosophy, accelerating the establishment of a new development paradigm, balancing domestic economic work and international trade struggles, resolutely managing China’s own affairs, expanding high-level opening-up, stabilizing employment, enterprises, markets, and expectations, and responding to external uncertainties with the certainty of high-quality development. 》Click for details

Xinhua Commentary published an article titled "Q1 China Economic Observation｜Implementing More Proactive Fiscal Policy Effectively". It stressed ensuring fiscal funds are deployed swiftly and effectively, optimizing expenditure structure, strengthening performance management, and directing every yuan toward critical areas of national welfare.

【Pan Gongsheng: Implementing Appropriately Accommodative Monetary Policy to Promote High-Quality Economic Growth】 Per the PBOC website, the second G20 Finance Ministers and Central Bank Governors Meeting of 2025 was held in Washington, DC on April 23-24, discussing global economic outlook, international financial architecture reform, and Africa’s development challenges. PBOC Governor Pan Gongsheng attended and spoke, with Deputy Governor Xuan Changneng also present. Participants acknowledged ongoing global recovery but highlighted rising downside risks from trade tensions, tighter financing conditions, and structural challenges. Concerns were voiced over trade friction escalation, calling for enhanced dialogue, policy coordination, and multilateral trade system improvements. Support was expressed for a more stable, efficient, and resilient international financial framework, including multilateral development banks’ financing capacity. Pan stressed that economic fragmentation and trade tensions disrupt supply chains and weaken growth momentum, noting trade wars have no winners. Major economies should strengthen macroeconomic policy coordination and take concrete steps to safeguard global stability. China’s economy started 2025 well, maintaining recovery momentum with stable financial markets. The PBOC will implement appropriately accommodative monetary policy to advance high-quality growth.

US Dollar:

The US dollar index rose 0.33% overnight Friday and 0.38% weekly, marking its first weekly gain since mid-March. Contradictory signals on tariff tensions caused volatility. On Monday, Trump’s criticism of Fed Chairman Powell triggered dollar asset sell-offs, pushing it to a low near 97.92—its weakest since April 8, 2022. However, Trump’s shifting rhetoric later lifted it above 99, though resistance at 100 persisted. The Fed warned asset valuations remained elevated post-April sell-offs, with housing prices still high.

Next week brings key US data and earnings. Q1 GDP, the Fed’s preferred inflation gauge, and April jobs data may influence rate-cut decisions. Employment figures will be pivotal as the nonfarm payrolls report reveals tariff and tightening impacts on the labor market. (Wenhua Composite)

Other Currencies:

USD/JPY rose 0.67% to 143.555 yen, while USD/CHF gained 0.09% to 0.827 francs.

EUR/USD fell 0.11% to 1.1377. Despite strong UK retail sales, GBP/USD dipped 0.1% to 1.3325.

BOJ Governor Ueda stated Thursday that rate hikes would continue if underlying inflation trends toward 2%, but US tariff effects require careful assessment.

GBP/USD declined 0.1% to 1.3325 despite March retail sales growing 0.4% (vs. expected -0.4%). Q1 sales rose 1.6%, the strongest in four years. MPC member Greene noted tariffs’ downward pressure on UK inflation, bolstering rate-cut bets. Markets now price in two cuts over the next three meetings and at least one more by year-end.

Macro Outlook:

Next week, China releases April official manufacturing PMI; the US reports ADP employment, Q1 GDP (annualized q/q), core PCE, consumer spending, Chicago PMI, personal spending, core PCE (y/y), pending home sales, jobless claims, SPGI/ISM manufacturing PMIs, nonfarm payrolls, unemployment, durable goods, factory orders, wholesale inventories, and consumer confidence; the eurozone publishes M3 money supply, industrial/economic sentiment, consumer confidence, Q1 GDP, SPGI PMI, core CPI, and unemployment; Germany issues Gfk consumer confidence, retail sales, unemployment, Q1 GDP, CPI, and SPGI PMI; Australia reports Q1 CPI, trade data; the UK shares CBI retail sales and SPGI PMI; France discloses Q1 GDP and SPGI PMI; Switzerland releases official reserves and economic expectations. Japan’s May 1 policy rate, March unemployment, Canada’s February GDP, and manufacturing PMIs for Mexico, Malaysia, and Brazil are also due.

Additionally, Canada holds federal elections; the BoC releases April meeting minutes; BOJ Governor Ueda holds a press conference and issues the outlook report.

Notably, due to China’s Labor Day holiday, SHFE, DCE, CZCE, and GFEX will suspend night trading on April 30. On May 1, exchanges in China (including Taiwan), South Korea, Germany, France, Italy, Spain, and the UK will close. Hong Kong operates normally but suspends northbound/southbound trading.

On May 5, Chinese mainland exchanges remain closed, while LME halts for the Early May Bank Holiday. South Korea observes Buddha’s Birthday, Japan celebrates Children’s Day, and Hong Kong closes for Buddha’s Birthday, with trading resuming May 6.

Crude Oil:

Oil prices rose overnight—WTI up 0.61%, Brent up 0.27%—but posted weekly losses (WTI -1.31%, Brent -1.75%) on surplus concerns and tariff uncertainty.

Prices hit four-year lows earlier this month as tariffs sparked demand worries and financial sell-offs. Weak growth may curb demand, while supply could rise if Russia-Ukraine conflict ends, freeing more Russian oil.

Baker Hughes reported US rig counts increased for the second straight week, the first since February. (Wenhua Composite)