Crack One Open. Manic Metals Report 08/09/2024

It might be time to crack one open for the weekend at the aluminum gap up maybe signal a bottom for all the industrial metals. Oh, sure it was helped by Chinese data.
Reuters repoted that China’s consumer prices rose at a faster-than-expected rate in July, while producer deflation persisted, as Beijing ramps up support for its frail consumer sector in the face of a sputtering economic recovery.
Reuters says the data comes in the wake of shrinking manufacturing activity and raised concerns about the outlook for exports at a time of soft domestic demand that has hobbled the world’s second-biggest economy.
The consumer price index (CPI) edged up 0.5% from a year earlier in July, versus a 0.2% rise in June, the National Bureau of Statistics (NBS) reported on Friday, beating a 0.3% increase in a Reuters poll of economists. Core inflation, excluding volatile food and fuel prices, gained 0.4% in July, down from 0.6% in June.
Aluminum along with copper has been very weak but the way that the market reversed with a gap higher could signal that the stock market induced sell off in aluminum is over.  Negativity helped bring down aluminum prices too low.
Gold will continue to shine a geopolitical risk, but silver continues to struggle in relationship but should still be undervalued. Then the perfect hedge recently against rising geopolitical risk war risk as well as the possibility that the Fed is going to be more aggressive with interest rate cuts than originally feared silver continues to lag because it’s an industrial metal and for that reason is out of favor.
Have a great e-mail me any questions on the pflynn@pricegroup.com