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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

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Sanctions And Tariffs. Manic Metals Report 02/10/2025

By On February 10, 2025 - 8:34 AM · In Manic Metals Report, Market Commentaries
US steel stocks are soaring, and metals are great again after President Trump is set to put sanctions on off 25% on all imports of steel and aluminum. The US stock market reacted positively after Alcoa and Dow stocks increased. Gold also surged after a slight dip on the Sunday Night open.   Zero Hedge reported Gold approaching $2900 as Comex vault panic accelerates and 735K troy oz (23 tons) were received on Feb 6, up from 479K the day before.
As we’ve said before we believe that there’s going to continue to be a lot of physical demand for gold we’ve been expecting that gold will hit $3000 an ounce in the market says seem to suggest that it’s moving in that direction gold is acting not only as a safe haven against potential tariffs but also by central banks want to build reserves after spending so much money on COVID Recovery.
Right now, the options are very expensive and there are some good opportunities to be writing some spreads.
Look to buy brakes on gold and silver.
The Wall Street Journal wrote that ” On the London Metal Exchange, the three-month aluminum futures contract gained 0.6% to $2,634.50 a metric ton, three-month copper futures advanced 1.2% to $9,390.50 a ton, while three-month nickel futures shed 0.5% to $15,725.00 a ton.
South Korean steelmakers pared steep early losses after Trump’s new tariff plan, with Posco Holdings and Hyundai Steel recently down 1.5% and 2.5%, respectively.
“Our estimates suggest that the economic impact from potential U.S. tariffs on steel and aluminum on emerging Asia is likely to be relatively limited,” Barclays’s FICC research team said in a note. “This would be consistent with the 2018 experience when U.S. tariffs on steel and aluminum did not appear to significantly derail emerging Asia exports,” they said.
The U.S. dollar strengthened against most other Group of 10 and Asian currencies, aided by possible demand for the greenback as a safe-haven asset. The ICE U.S. Dollar Index rose 0.4% to 108.42. The dollar climbed 0.5% to 152.11 against the yen, gained 0.2% to 33.88 versus the Thai baht and edged 0.1% higher to 1.3565 against the Singapore dollar.
“Tariff developments were supportive of the U.S. dollar,” Taylor Nugent, senior economist for markets at National Australia Bank, said in commentary. “The move would impose tariffs on American imports equal to rates that trading partners impose on American exports.”
Thanks,

Phil Flynn

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

Contributor to FOX Business Network

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