Gregory Shearer, head of Base and Precious Metals Strategy at J.P. Morgan, notes that the market is currently experiencing a lack of engagement with gold as investors weigh the prospect of further rate hikes. This cooling sentiment stands in sharp contrast to the metal's previous performance, with analysts now debating its utility as a traditional hedge. Tai Hui, chief market strategist for Asia Pacific at J.P. Morgan Asset Management, recently highlighted that gold’s correlation with risk assets remains inconsistent, suggesting it should be viewed as a tool for return enhancement rather than a reliable defensive buffer against geopolitical shocks.

While gold faces headwinds, the outlook for copper remains structurally supported. Shearer points to a global industrial upturn, particularly in China, coupled with anemic mine supply as key catalysts. A looming U.S. tariff review on refined copper is expected to intensify the competition between Washington and Beijing, potentially tightening ex-U.S. market balances. This tug-of-war, according to J.P. Morgan’s projections, could provide the momentum necessary for copper prices to push toward $15,000 per metric ton. Meanwhile, in energy markets, the bank anticipates a gradual resumption of oil flows through the Strait of Hormuz, though they warn that the path to supply normalization will likely remain volatile throughout the remainder of 2026.