Commodities Rally on Supply Fears, Then Retreats as Dollar Strengthens

Zinc and copper prices surged to multi-year highs on Tuesday due to supply fears before retreating under pressure from a stronger dollar.

Benchmark three-month zinc on the London Metal Exchange rose by 1.3% to $3,933 a metric ton, its highest since May 2022, after touching $3,990.

Copper also reached a seven-month peak at $14,441.50 a ton before slipping into the red, standing 0.5% down at $14,218.

Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, attributed the price movements to tight supply outlooks and concerns about rising yields and funding costs.