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The MySteel 62% Australian iron ore fines price was 2.3% higher at US$131.50 per tonne, the highest since August.
The price is being supported by heavy rain in Brazil, which has forced mine suspensions, the threat of a cyclone in Australia and restocking ahead of the Chinese holiday period.
Base metals were mixed overnight with tin, copper and aluminium losing more than 1% each.
Nickel continued to gain ground, adding another 0.8% to $22,417/t, the highest price since mid-2011.
Gold largely held onto Wednesday's gains, and was trading at US$1,826/oz shortly after UK market opening.
"With Fed policy taking a more hawkish turn, the fire hose of liquidity that has fuelled market mania is being turned off," Sprott senior portfolio manager John Hathaway said.
"At this moment, it appears that confidence in the Fed and attraction to gold are binary. Our view is that a position in gold offers a very favourable asymmetric risk-reward proposition on the possibility that confidence will not survive 2022."
The S&P 500 was down over 1% on Thursday as fed funds futures moved to price in a 93% chance of a March rate hike. The US dollar continued to weaken and has now put in its worst three-day performance for over a year, having shed -1.25% in that time.
