Tariffs And Animal Spirits. Manic Metals Report 06/02/2025

Metals both precious and industrial, surging on a combination of concerns about tariffs on steel and aluminum and those good old fashioned capitalistic animal spirits.

The surge in metals ignites the bullish flames that have dominated the metals market for most of this year and signals that we could be making new heights on a lot of metals in the next couple of weeks.
To take advantage of this we’re recommending to our client’s futures and options and for them to follow the daily trade levels that we release..

Gold and silver are also surging over the weekend on increased geopolitical risks but mainly because the metals are in favor of gold is a perfect match for every opportunity uncertainty, Trade wars, the dollar’s value, and Fed policy keep metals popular. Historically, we believe metals have been undervalued for the past decade. Gold and silver may rise significantly in the coming months to align with historical norms.  We even see it in energy, and you can read that in my daily energy report. Copper prices surged nearly 5% due to concerns about escalating trade tensions with China. According to Bloomberg News China accused the US of violating the recent trade deal and vowed to take measures to defend its interest.

This coincides with a more than 4% increase in stockpiles in London, which have fallen to 75,000 tons after 10 consecutive days of tightening supplies. Additionally, the International Copper Study Group has forecasted a 2.3% increase in mine copper output; however, this is still falling short of meeting the rising demand. They also anticipate a 2.9% increase in refined production by 2025.

The one thing that we’ve been saying for sometimes is that we know that there is a structural shortage coming to the copper market and while we all see that ahead of us we still see these wild fluctuations based on short term concerns about the economy and trade wars and such but you want to look for those opportunities to try to secure long term investments in the copper space.

India is trying to make India great again according to reports India is going to offer lower import duties to produce electric cars if they make them in India.  Electric cars significantly drive the demand for metals.
Platinum spreads are also very attractive as you can get some wild swings and because of the thin trading it’s only for people with very deep pockets but substantial clients can check in to find out the different types of spreading opportunities when it comes to these two beautiful trades of course we also talked about the gold versus platinum spread which is also a seasonal all of those seem to be coming into play so when you look at the metals it’s probably time to make sure you have some of them in your portfolio but also from the future so it’s very important to trade take advantage of this with you were risk versus profit potential kept in mind.

You can call me for an assessment by dialing 888-264-5665 or emailing pflynn@pricegroup.com