Gold Rises as Investors Weigh U.S. Inflation Data, Trade Developments — Market Talk

Antofagasta's second-quarter production update should drive a 2% increase in full-year earnings before interest, taxes, depreciation and amortization expectations, RBC Capital Markets analysts write. This is due to higher realized prices and lower costs, they write. Antofagasta's molybdenum production was particularly strong but this is unlikely to be maintained over the full-year, they add. Shares trade up 2.3% at 1,881 pence.(adam.whittaker@wsj.com)

Silver prices climbed toward $38 per ounce on Wednesday, rebounding after a two-day decline as the US dollar and Treasury yields retreated from recent highs.

The pullback came as investors reassessed the Federal Reserve’s policy outlook and monitored shifting trade dynamics.

On Tuesday, silver had come under pressure after US consumer inflation data led traders to scale back expectations for imminent Fed rate cuts.

Dallas Fed President Lorie Logan added to the cautious tone, saying the central bank will likely need to keep rates steady for longer to contain inflation, especially amid upward pressure from tariffs.

Meanwhile, trade tensions intensified after US President Donald Trump signaled potential tariffs on pharmaceuticals and semiconductors starting August 1, and warned of over 10% levies on smaller nations.

By Adam Whittaker

Antofagasta said its second-quarter copper production rose 3% on-quarter and net cash costs fell 27% as it benefited from higher output at Centinela and Los Pelambres, as well as increase in by-product credits. It backed its full-year guidance and said it expects copper production to be between 660,000 and 700,000 tons. Meanwhile, net cash costs are expected to be toward the lower end of its guided range of $1.45 and $1.65 a pound.

On copper production:

"Copper production in Q2 2025 was 160,100 tonnes, representing a 3% increase quarter-on-quarter, reflecting higher output from the Group's two concentrators (Centinela Concentrates and Los Pelambres), offset by lower output from the Group's cathode operations."

"Copper production in H1 2025 was 314,900 tonnes, representing an 11% increase year-on-year."

On gold production:

"Gold production in Q2 2025 was 48,300 ounces, 13% higher than the prior quarter, with an increase in production at both Los Pelambres and Centinela Concentrates. Gold production in H1 2025 was 91,200 ounces, representing an increase of 36%, with higher output at both Centinela Concentrates and Los Pelambres."

On molybdenum production:

"Molybdenum production in Q2 2025 was 4,400 tonnes, 42% higher quarter-on-quarter, principally reflecting higher output at Los Pelambres. Molybdenum production of 7,400 tonnes in H1 2025 was also 42% higher as a result of higher output at both Los Pelambres and Centinela."

On cash costs:

"Cash costs before by-product credits in Q2 2025 were $2.27/lb, representing a 4% decrease quarter-on-quarter, driven by higher production at both Los Pelambres and Centinela Concentrates. Cash costs in H1 2025 were $2.32/lb, a year-on-year decrease of 13% due to increased production at both Los Pelambres and Centinela Concentrates."

"By-product credits in Q2 2025 were $1.15/lb, representing a 39% increase quarter-on-quarter, with this increase associated with strong by-product volumes and pricing. By-product credits in H1 2025 were 41% higher at $1.00/lb, following higher by-product production and realised gold prices."

"Net cash costs in Q2 2025 were $1.12/lb, representing a 27% reduction quarter-on-quarter, reflecting lower underlying costs and an increase in by-product credits seen during the period. Net cash costs in H1 2025 were $1.32/lb, representing a 32% decrease year-on-year, with lower underlying cash costs and higher by-product credits."

On guidance:

"Guidance for the year remains unchanged. Group copper production for the full year is expected to be in the range of 660-700,000 tonnes."

"Group-level cash cost guidance, both before and after by-product credits, is also unchanged at $2.25-2.45/lb and $1.45-1.65/lb respectively."

"Net cash costs [are expected] towards the lower end of the guidance range of $1.45-1.65/lb"

"Capital expenditure guidance is also unchanged at $3.9 billion."

Projects update:

"All major projects remain on track and on budget."

On Los Pelambres:

"Copper production rose by 5% to 73,300 tonnes in Q2 2025, reflecting higher copper grades and recoveries. Lower quarter-on-quarter throughput rates followed maintenance completed during the period, including maintenance work on the processing plant in early April as announced in the Group's Q1 Production Report. Following this work, Los Pelambres is expected to deliver quarter-on-quarter production increases for the remainder of the year."

On Centinela:

"Total copper production rose by 9% in Q2 2025 to 60,600 tonnes, reflecting an increase in copper in concentrate production, offset by lower cathode production, shifting the balance of copper in concentrate to cathodes to 73% of total production across the Centinela District. Total copper production in H1 2025 rose by 25% to 116,200 tonnes, with an 84% increase in copper in concentrate output year-on-year and 28% lower production of cathodes."

On Antucoya:

"Copper production in Q2 2025 was 4% lower on a quarter-on-quarter basis at 19,300 tonnes, relating to an increase in copper recorded as inventories in the leach pads and lower recoveries, partially offset by an increase in ore throughput rates. Copper production in H1 2025 was 2% lower than the prior year period, reflecting higher inventories, lower grades and ore throughput rates, offset by higher recoveries."

On Zaldivar:

"Total attributable copper production in Q2 2025 fell by 22% to 7,000 tonnes during the quarter, following lower ore throughput rates, partially offset by higher grades. Total attributable copper production in H1 2025 was 15% lower at 16,000 tonnes, primarily as a result of lower grades during the period."

Write to Adam Whittaker at adam.whittaker@wsj.com

Copper futures slipped below $5.50 per pound on Wednesday, reversing gains from the previous session, as momentum in redirecting shipments to the US began to ease ahead of looming tariffs.

The slowdown in US-bound demand has weighed on global copper flows, with requests to withdraw inventories from London Metal Exchange warehouses dropping sharply.

This comes as markets brace for a 50% tariff on copper imports announced by President Donald Trump, set to take effect on August 1.

The move is aimed at boosting domestic production and reducing dependence on foreign refined copper.

Currently, the US produces just over half of the refined copper it consumes annually, with Arizona alone contributing more than two-thirds of domestic output.

In 2024, over 90% of US copper imports came from Chile, Canada, and Peru.