Mining stocks in Asia and Europe climbed with metals prices as investors rotated into hard assets, driven by a weakening dollar and growing unease over currencies, geopolitics and global fiscal risks.
The Stoxx 600 Basic Resources sub-index rallied as much as 1.5% on Monday to its highest intraday level since June 2008. Fresnillo Plc and KGHM Polska Miedz SA led gains after gold passed $5,000 for the first time, while silver and platinum touched records. In Asia, Korea Zinc Co. shares climbed as much as 14% in Seoul while Zhongjin Gold Corp.’s jumped 10% in Shanghai. Markets were closed for holidays Monday in Australia and India.
The advances mirror a powerful rally in metals markets, where gold, silver, copper and aluminum are climbing on what traders describe as a debasement trade. Investors are pulling away from currencies and Treasuries, seeking refuge in hard assets as concerns mount over fiscal largesse, geopolitics and the durability of US exceptionalism.
The rally in metals “is a long term trend that we have been observing for several years,” said Frank Benzimra, head of Asia equity strategy at Societe Generale SA. Reasons include a diversification away from US assets, and rising defense spending boosting demand for base metals along with AI-related needs.
The dollar fell Monday on heightened alert of Japan government intervention to halt a slide in the yen — possibly with rare US assistance. Gold surged above $5,000, rising a continued uptrend from last week’s market turmoil over President Donald Trump’s threats over Greenland and attack on the Federal Reserve’s independence.
