Metals The Fed and Artificial Intelligence. Manic Metals Report 07/30/2025

Palladium prices are surging as President Trump lays down the hammer on Vladimir Putin and threatens sanctions of 100% unless they get a ceasefire with Ukraine l in 10 days.
At the same time, copper is pulling back after a big surge on concerns that a US-China trade deal may get murky, especially as we see tensions between the United States and Russia ramp up, trying to force a ceasefire. There are reports because the Polish Prime Minister Donald Tusk came out and said that he sees signs that there could be a ceasefire in Ukraine, which would be a game changer for all of the markets. I
If President Trump does get a peace deal, this could be a major game changer for the trajectory of some of the metals. At the same time, the Federal Reserve decision today is going to be huge.
Some people are going to accuse Federal Reserve Chairman Jerome Powell of having artificial intelligence or being artificially intelligent, or not intelligent at all, according to President Trump, if he doesn’t signal that he’s going to cut interest rates.
But the main thing is, when you look at gold and silver, if the Federal Reserve becomes a little bit more dovish, it could mean an explosive move to the upside of both gold and silver. Platinum, of course, which was the leader of the entire complex, has been showing a little bit of weakness compared to gold and silver.
The other key thing, of course, is that it’s the last day of the month and we have a lot of options expiring, especially the month end on the metals, so this could be the major turning point day on metals. If the Fed becomes a bit more dovish, we could see the markets really start to move upward on the metals.
Overall, metals demand remains strong, especially as artificial intelligence increases the need for copper, platinum, palladium, and other metals.  The  White House announced a Presidential AI challenge aimed at advancing leading AI projects nationwide, supporting scientific innovation and economic growth. Obviously a lot of those projects are going to need a lot of metals but it’s just another reminder that the challenge is to meet demand for artificial intelligence is going to take a incredible effort compelling us to transform our electric power grids it’s artificial intelligence transforms our world.
It’s going to be interesting to see how silver reacts after silver hit a 14-year high this month, reaching $39.33 per oz. $40.00, of course, seems to be a number that everybody’s talking about—that if we exceed that level, we could see a sharp rise to test the all-time highs. Silver so far is up 5.42% over the past month and up 30.78% year over year. Silver has only briefly touched $40.00 an ounce twice before—once in 1980 and again in 2011—which, of course, were the crescendos of silver’s previous bull markets. Yet when you base silver and you adjust for inflation and you look at the price of other metals such as gold, it is very compelling to speculate that if we take out $40 this time, it won’t necessarily be a top but perhaps a historic bottom. In other words, I could foresee a scenario that once we break through $40, we’re not going to look back, and that $40, instead of being the ceiling, will now become the floor. Long term, of course, we must get through $40 the first time to prove that I’m right or wrong.
Copper has been held back a little bit this morning on uncertainty about the kind of talks trade talks with China. Reuters reported that  U.S. President Donald Trump on Wednesday said his reciprocal tariff deadline for remaining trade partners will not be extended this Friday. “The August first deadline is the August first deadline – it stands strong, and will not be extended. A big day for America!!!” Trump wrote on his social media platform in all capital letters.
And when the president uses capital letters on truth social you know he’s serious
Yesterday Reuters reported that U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war between the world’s two biggest economies that threatens global growth.
No major breakthroughs were announced, and U.S. officials said it was up to President Donald Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures. But U.S. Treasury Secretary Scott Bessent tamped down any expectation of Trump rejecting the extension.
Keep in mind that U.S. copper prices hit a record high this month at $5.69 per pound before struggling to reclaim that level. While some point to a short-term surplus, the broader picture still shows a structural shortage. Chile has raised concerns about potential tariffs, and with reports of India stepping in as a significant copper buyer, these shifting dynamics are absolutely worth watching as we move forward.
This is especially because just this morning president trump said that he’s going to put a 25% tariff on India on his truth social account this could get the precious metals rocking especially the copper.
President trump says that we have a massive trade deficit with India. Oh Boy
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