Copper Correct Redirect. Manic Metals Report 06/28/2024

The global copper t market concerned about a structural shortage has pulled back in recent weeks on concerns about Chinese economy. China copper exports sunk the market along with Fed Speak but today it appears the copper is regaining some momentum as the reality of the tight supply situation is starting to be factored back into prices.

Copper plunged after it was reported that copper stocks registered with the world’s big three exchanges have risen above 500,000 metric tons for the first time since August 2021.

Reuters saif that the London Metal Exchange (LME) inventory has surged by 56,850 tons so far this month and at 172,850 tons is the highest it has been since December last year.

Part of that increase was due to China taking advantage of higher price by selling copper high but now that price have dropped, they are reports that they will start buying again.

 So let me get this straight, China sells high and buys low.  HMMM. Very interesting concept.

Platinum continues to be the best performer during the recent metal’s complex weakness.   Economies reports that Platinum price formed a temporary correctional wave yesterday to test the $983.00 support line and settled above it, confirming the bullish scenario by settling near $997.00.

The price now needs new positive momentum to sustain the positivity, emphasizing the importance of surpassing the $1015.00 barrier to open the way towards new positive levels, potentially starting at $1042.00.

Yet as Barrons pointed out that “Gold and copper might grab headlines, but silver is one of 2024’s best-performing commodities, up 21% year to date, beating its metallic cousins—and the S&P 500 index.

Barrons say that many investors are seemingly shunning the gray metal.

“Most silver bullion and silver-mining stock exchange-traded funds have net outflows year to date, according to Morningstar data, while U.S. Mint silver bullion coin sales are 1.34 million ounces, less than half of 2023’s sales of 3.4 million ounces through June.

It’s their loss. Silver is trading around $30 an ounce, its highest level since 2012, despite a seemingly tough fundamental backdrop for precious metals: high interest rates, tapering inflation, a strong stock market, and a still-growing U.S. economy.“

Devils look like it’s going to be an explosive Friday as long as the inflation data doesn’t come in ridiculously hot metals look like they’ve set for a significant rebound on both the precious metal side and the industrial metal side obviously we have fed speaker Michelle Bowman which has been poison to the price of metals as a noted fed hawk, but the fundamentals are very positive for metals.

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