Gold futures hover near $4,344.70 per troy ounce early Wednesday, with prices largely unchanged as traders await the U.S.-Iran interim peace agreement. While easing inflation typically pressures non-yielding assets, MUFG analyst Soojin Kim notes that lingering geopolitical uncertainty and cautious investor sentiment continue supporting the precious metal. Markets also await Federal Reserve guidance on inflation and rate outlook.

BofA Securities projects copper demand will stay strong through AI-driven data center expansion, citing the metal's essential role in power delivery and grid infrastructure. Supply constraints add further upward pressure on pricing. The bank's top picks include Zijin Mining, China's largest copper producer, along with CMOC, reflecting positive views on both copper prices and volume growth trajectories.

UBS analysis reveals approximately 5% of iron ore supply operates at a loss at current $102 per ton spot prices. Despite this cost-curve support, the bank flags downside risks from elevated Chinese port inventories, net-short positioning, and rising incremental supply. UBS expects higher-margin producers like BHP and Rio Tinto to outperform lower-margin operators including Fortescue and Mineral Resources if prices decline.

These divergent commodity outlooks reflect broader market uncertainty as investors balance geopolitical developments against fundamental supply-demand dynamics. The basic materials sector continues navigating volatile pricing environments while awaiting clearer signals on global economic trajectory and energy market stabilization.