On Friday gold jumped over 1% to unprecedented highs after the dollar and Treasury yields fell. The movements followed remarks from Federal Reserve Chair Jerome Powell that suggested an interest rate reduction in September. Concerns about inflation near the Fed’s 2% goal added to signs of lower interest rates, as Powell’s comments did. For a smart gold investor, this means not that the bull run is playing out but in fact this advance has discouraged much widespread interest.

Gold prices are also seen getting further support as the market awaits the Federal Reserve’s meeting on Wednesday, which is widely expected to give clues over potential rate cuts this year. The longer it takes to come up with a solution, the better of gold will be as people hold onto their safe-haven asset whilst uncertainties linger.

Copper, in the meantime might be planning its comeback after going through a slump for quite some time. Prices raced to new highs earlier in the year, driven by a buying frenzy stoked by worries over future shortages that lifted copper on the London Metal Exchange above $11,100 per metric ton in May. Supporting the move were funds buying and momentum traders who fed off the hoped-for lack of available product in the market.

However, copper prices are now down and metal and manufacturing activity in the biggest buyer of raw materials has moderated along with profits. It led to consumers delaying purchases and producers delivering excess metal into LME-registered warehouses. This has resulted in vast quantities of surplus production especially being exported drawing international criticism and accusations that China is exporting deflation by dumping goods onto world markets.

Although the price of copper has since begun to rise, a long way from it’s earlier year prices. The recovery of copper prices in the coming months will depend on a variety of factors such as manufacturing demand, global economic conditions and potential broader trade implications.

In this environment gold and copper prices are likely to remain in the limelight for the financial markets. The performance of these commodities plays a key role in the global economy, and their behaviour is being watched closely by investors as an indicator for economic sentiment and policy changes.