Copper has rebounded by 42.3% from its March low of $4625/t.
According to Bloomberg, copper inventories dropped to the lowest levels since 2008. Nickel rose to its highest level since November, while zinc reached a new seven-month high.
Writing for Kitco.com, Neils Christensen said that despite gold being above the $2000 mark, the market could use some consolidation to allow investors to get comfortable with current prices, according to one market analyst.
In an interview with Kitco News, Ole Hansen, head of commodity strategy at Saxo Bank, said that he was not surprised that gold prices last week reflected some of the most intense selling pressure in years. However, he added that the recovery had happened quicker than he initially expected.
Hansen explained that the gold market has managed to push above a critical retracement level, which could signal a return to all-time highs in the near-term.
Although there are real reasons for gold prices to be holding above $2000, falling bond yields, a weaker US dollar, overvalued equity markets and ongoing geopolitical uncertainty, to name a few, Hansen said that he would have like to have seen more consolidation.
"My biggest worry right now is actually that there's nothing to worry about. And that obviously makes me worried," he said. "I would have liked to see this market just consolidate, just to allow the investors to get used to these new, higher levels."
Hansen added that he was not the only one concerned that the gold market appears a little over stretched. He noted that in a recent survey from a major investment bank, 31% of fund managers thought gold was overbought.
"That's the highest number, I think, going back at least almost 10 years," he said. "So fund managers are starting to get a little bit worried about these elevated levels."
Although the gold market might be a little too expensive for some investors, Hansen said that there was still plenty of value in precious metals.
While some investors are looking at silver as it starts to outperform the yellow metal, Hansen said that he was looking a little further down the value chain at platinum.
"Platinum's discount to gold is back above a thousand dollars. It peaked recently close to $1100," he said. "If we do see this rally stretch higher than the relative value of players will try to look elsewhere. And right now the investments of speculative investment in platinum is quite low. This discount could potentially attract some additional buyers."