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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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Iran Risk Versus the Hawk. Manic Metals Report 06/20/2025

By On June 20, 2025 - 9:26 AM · In Manic Metals Report, Market Commentaries
Apparently risk buying in gold to hedge against the uncertainty surrounding the Israeli attack on American can’t overcome the great “hawk” Federal Reserve Jerome Powell who President Trump says isn’t very smart.
In his Post Fed press conference Federal Reserve Chairman Jerome Powell stated that goods price inflation is expected to increase over the summer as tariffs imposed by U.S. President Donald Trump affect consumer prices.
“Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer,” Powell remarked.
Yet this is just speculation by the Fed Chair and the actual truth of the matter is that it is not the case.
In fact, ready returns show that most of the tariffs are being eaten by China and the exporting countries We are also seeing a lot of that tariff money end up in the pockets of the Federal Government’s pocket which is reducing our trade deficit.  By increasing the cost of foreign goods tariffs are reducing imports and shrinking our trade deficit and we saw imports dropped significantly in April contributing to a trade deficit reduction from $138.3 billion in March it’s to only 61.6 billion in April.
This initiative will promote domestic manufacturing and the re-shoring of US production, which will help reduce our trade deficit. Additionally, it will lower our budget deficit, thereby decreasing the need for government money printing. This, by definition, is a method to alleviate inflation.
..
Yet with Jerome Powell just doesn’t get sit inflation isn’t caused by tariffs he should look at the history of tariffs.
Maybe he would learn something unlike Ben Bernanke, apparently Mr. Powell is not really a student of economic history.
Jerome Powell should recognize that inflation is driven by government overspending and excessive money printing, which he supported during President Biden’s term.
The Fed chairman continued to give President Biden’s political cover by suggesting to the world that inflation was transitory and that out-of-control government spending was just hunky Dory with him.
Risk aversion in the gold market is facing challenges due to Federal Reserve Chairman Jerome Powell’s firm stance. Although global central banks are making significant purchases, gold and silver prices have decreased. The Fed’s ongoing concerns about inflation are having a greater impact on precious metals compared to industrial metals and that may bring the gold market back.
The World Gold Council reported that central banks remain optimistic about gold, with 95% expecting global gold reserves to rise in the next 12 months. A record 43% believe their own reserves will also increase, while none foresee a decline. Central banks value gold for its crisis performance, diversification benefits, and inflation hedging. Its strategic asset role, ability to store value, and effectiveness as a diversifier are key reasons for this outlook.
Most respondents (73%) anticipate lower US dollar holdings in global reserves over the next five years, and expect an increase in the share of other currencies and gold. The survey noted that active management of gold reserves is expected to rise from 37% in 2024 to 44% in 2025, with risk management becoming a more prominent reason alongside enhancing returns.
The Bank of England is the top choice for gold reserves storage (64%). More respondents are storing gold domestically this year (59% in 2025 vs 41% in 2024). Only 7% plan to increase domestic storage in the next 12 months.
And the metal continues to be the platinum which is being driven by near record buying by the Chinese government.
China imported 11.5 metric tons of platinum in April, the highest monthly level this year and a 47% increase from March. This surge reflects strong demand from jewelers and investors viewing platinum as a more affordable alternative to gold. Consumption is also driven by efforts to become more self-sufficient in high-tech manufacturing due to tariffs imposed by the Trump administration. The World Platinum Investment Council projects a 966,000 oz deficit in 2025, marking the third consecutive year of shortfalls.
No it is very explosive and there’s a lot of people that think that these prices can’t be sustained This is why you should be signed up for the full fund daily trade levels to take advantage of these moves.
Copper has also been under pressure after Jerome Powell but seems to be making a comeback. Like it’s a supply deficit in copper it should be  just a matter of time before the market resumes its uptrend. This year copper is expected to be in a deficit of more than 200,000 tons. This could lead to good opportunities to be mined the brakes remember the copper market has micro contracts as well but you can also try to use the options even though they’re not as liquid as some of the other option markets.
Long term between 2030 and 2035 private forecasters expect to see a 6.5-million-ton deficit of copper the International Energy Agency estimates that existing mines will only be able to meet 80% of copper needs by the year 2030 so make sure that you sign up for my daily trade levels and also call for opportunities to try to figure out how to take advantage of these historic moves in the metals call me 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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