Copper Coal Mine. Manic Metals Report 07/25/2024

It appears that copper once again with the canary in the coal mine, R recent weakness in copper seem to signal an eventual correction in the stock market, which we saw in big time fashion.
The correction that has seen in the stock market is partially due to incredible political uncertainty in the world’s largest economy and as President Biden gave a very vindictive speech as he decided not seek reelection but continue in the Presidency.
Now it appears that copper may be the signal that the correction may not be over just yet but could be soon.
It helps that that China released that they did too little to boost their commodity hungry economy. That has changed overnight,
The Wall Street Journal reported that The People’s Bank of China on Thursday lowered the rate on its one-year medium-term lending facility to 2.3% from 2.5%—the first such cut it has made since August last year. It also injected 200 billion yuan, or about $27.54 billion, of liquidity into the market via the mechanism.
That boost of stimulus and because it came as a surprise may put the copper bearers on notice to not to be too aggressive if China surprised the market once they could do it again and maybe in a more spectacular fashion.
Myra P. Saefong at Market Watch said that Coppers drop happened for many reasons. The main reason was the fact that China’s economy expanded at a slower-than-expected 4.7% annual rate in the last quarter, its National Bureau of Statistics reported last week. That compared with a 5.3% annual pace of growth in the first quarter.
She Points out that Copper was also caught in the broader risk-off sentiment Wednesday, with benchmark U.S. stock indexes trading sharply lower, pressured by weakness in technology shares following mixed quarterly results from Tesla
The industrial metal had touched record highs just two months ago, benefiting from expectations of growing demand, particularly given its use in electric vehicles and artificial intelligence.
So, if China keeps juicing the economy. Perhaps copper can lead us back out of the coal mine.
The shiniest metal in recent weeks has been gold, gold that just achieved record highs on political uncertainty in the United States.
The pullback after silver plunged on growing macroeconomic fears weighed down gold that just saw a record high. The plunge in the NASDAQ also impacted silver demand expectations.
If we see a will get off in the tech sector the demand for silver will be lowered so we’re also trying to find a bit of a bid here but looks pretty precarious right now silver needs to latch on to gold as the gold silver ratio is still way out of whack if cold can hold its ground and not be dragged down by silver we could be close to a bottom once again the macroeconomic numbers are going to be key today and tomorrow today’s GDP is big to see if we’re going into a recession if not that should be supportive for silver and tomorrow we get the PCE price inflator and that’s an indication of inflation that may be even more important for all the metals tomorrow.

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