Guotai Asset Management says China nonferrous metal selloff driven by rate fears, not fundamentals
XME•Guotai sees rate fears driving the selloff
Guotai Asset Management flagged a sharp selloff in China’s nonferrous metals shares, driven by rising global rate expectations, oil-led inflation fears, and copper tariff uncertainty.
- US August PPI rose 5.4% year-on-year, lifting market pricing for a September Fed hike to 70%.
- Brent crude neared USD 110 a barrel, reinforcing inflation stickiness, pushing yields higher, and pressuring gold.
Longer-term view remains constructive on gold and copper
Guotai kept a constructive longer-term view on gold, citing accelerating central-bank buying, a weaker dollar reserve share, and limited further hawkish repricing.
Copper fundamentals were still seen as supportive on tight mine supply, potential weather-related disruptions, and expected inventory drawdowns, despite near-term volatility into US August CPI at 20:30 Beijing time.
