About The Author

Phil Flynn

Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665

All they needed was confirmation that Inflation was not out of control and copper rocketed, we warned about a copper supply squeeze and that is happening. And after the lower-than-expected Consumer Price Index (CPI).
The Bureau of Labor Statistics released the December consumer price index on Wednesday. The report showed that the annual rate of inflation was 2.9% last month, meaning it is still running well above the Fed’s 2% target as reported by Barrons.

Yet because it came in softer than expected we saw a huge surge in gold silver copper as well.
Reports that t the premium in the New York futures trade is above the cash market in London continues to mean that is short positions are getting squeezed out of fear of disruptions to physical flows should Donald Trump put tariffs on the imports of these metals, according to Ole S Hanson

Bloomberg is also reporting that China is planning to ramp up its spending on its power grid after a green energy supply boom.

Bloomberg expects that demand for metals from copper to steel are going to explode se because of Chinar’s desire to power some of their green energy initiatives at the same time of course they are building more coal plants and importing a record amount of coal so I guess China can be green and have its coal too.

Bloomberg also reported that Rio Tinto Group, the world’s top iron ore exporter, said shipments of the steelmaking material slipped in the fourth quarter, as demand from China remained lackluster and production at some mines declined.
The miner exported 85.7 million tons of iron ore in the three months to Dec. 31, down 1% from the year before. Meanwhile, mined copper surged 26% as Rio mined higher quality grades at its Escondida mine in Chile and continued to ramp up output at the Oyu Tolgoi project in Mongolia, it said in filings Thursday.

Get the copper seems to have been a breakout mode the bottom line is there’s a structural shortage in copper that’s going to develop over the next couple of years the demand for electricity and power centers is going to mean that this market is going to remain tight .Y
es, we will see ups and downs but it’s definitely pushing us towards an era of higher prices.

Silver also awoke from the dead we still believe that silver is undervalued compared to gold both had a great day, and silver has a lot of catching up to do.
platinum seemed to be the laggard, but we expect the platinum will start to move obviously concerns about Russian sanctions could hit platinum fairly directly.
Gold still targets $3000 an once and Silver $60 to $70
Make sure you stay tuned to the Fox Business Network also call to open your account today at 888-264-5665 or e-mail me at pflynn@pricegroup.com.

Thanks,

Phil Flynn

Senior Market Analyst & Author of The Energy Report and Manic Metals Report

Contributor to FOX Business Network

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