Metals Flip Out! Manic Metals Report 07/29/2025

Metal prices flipped out yesterday after President Trump announced the historic trade deal with the European union causing a surge in the dollar and the collapse of many of the metals markets. It is also going to pressure The Federal Reserve to cut rates as we are getting detached from the rest of the world and reality.

 It was not too long ago when copper prices jumped 13% to a record $5.69 per pound on July 8 after President Trump announced a 50% tariff on copper imports starting August 1.  That  was the largest single-day increase since 1968.

 Copper kicked off yesterday looking strong, but it didn’t last—prices slid to their lowest in a week, with everyone bracing for those new US tariffs. COMEX copper futures dropped nearly 3% to $5.613 a pound, a big shift after last week’s wild rally that almost broke the $6 mark. Metals trading has been a total rollercoaster lately, and you can bet traders are feeling every twist and turn

As we mentioned before , despite a tight copper market, the International Copper Study Group (ICSG) reported a 233,000-metric-ton surplus through April 2025, suggesting that well-stocked inventories could cap price gains. A sudden increase in reported inventories or a shift of copper stocks from international warehouses (like the London Metal Exchange) to the U.S. (COMEX) could have eased supply concerns, leading to a price drop. For example, LME stocks declined by 122,900 metric tons in early 2025, while COMEX stocks rose, indicating inventory rebalancing that might have stabilized or lowered prices.

So, even though copper’s been in high demand, the International Copper Study Group (ICSG) actually reported a surplus of 233,000 metric tons through April 2025. In other words: there’s no shortage—at least not right now—which could help put a lid on wild price jumps, but folks are still worried about a long-term supply squeeze. Earlier this year, LME stocks dropped by 122,900 metric tons, but COMEX stocks went up, so there’s definitely some juggling happening. And get this: experts think we could be looking at a massive 8.4 million ton copper deficit by 2030, mostly because green energy is ramping up and mines can’t keep pace.

Metals took another hit when the dollar surged after that big EU-U.S. trade deal, and now the Fed’s under the microscope. Europe’s already cutting rates, but the U.S. is standing firm, which has everyone watching Jerome Powell at the next Fed meeting—if there’s even a hint of a rate cut, it could be a game-changer for oil and could give gold, silver, platinum, and palladium a serious boost. Oh, and don’t forget platinum and palladium—there’s talk about more sanctions on Russia, and that could really mess with global supply, sending prices higher as buyers hunt for new sources.

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