Traders Safe Haven. Manic Metals Report 09/03/2025

Welcome Back from vacation Gold Bugs and others. Gold has reached record highs, surpassing $3,600 per ounce a by heightened geopolitical concerns, consistent central bank purchases, and inflationary fears linked to global trade uncertainty. Hedge funds and investment advisors came back from the holiday roaring back into the precious metals driving gold to another historic height.  Kitco news report that gold futures delivered their most impressive single-day performance since April 21st, surging $83.40 to establish a new all-time record high of $3,602.40 as of 5:33 PM ET. This remarkable rally represents the continuation of a broader bullish trend, with gold futures advancing in six of the past seven trading sessions. The December futures contract for gold is currently fixed at $3599.50, after factoring in the gain of $83.40
Talk of haven buying as stock valuations reach near record levels and some advisers look to have a hedge against stock market gains. Whther  gold and silver is the perfect hedge for that situation remains to be seen but it is one of the thoughts in the back of the minds of many precious metal buyers.
We also had some gold buying inspired by the fact that we had federal judge try to block President Trump’s tariffs. On Friday, a federal appeals court ruled against Trump’s use of emergency powers to impose tariffs, which may mean the administration must refund billions in duties. The 7-4 decision also casts uncertainty on agreements with trade partners like the EU, Japan, and South Korea to lower reciprocal tariff rates.
Of course, if the Supreme Court doesn’t overrule this situation it’s going to put tremendous pressure on the Federal Reserve to not only cut rates once but maybe a bigger than expected rate cut as this will take a big chunk out of the US deficit that the tariffs were starting to help alleviate.  Kitco Reported that Another major catalyst behind gold’s rally centers on evolving Federal Reserve policy expectations. Market participants are increasingly confident that the central bank will implement a 25-basis point rate reduction this month, with current pricing reflecting a 91.7% probability of such action. This represents a notable increase from 86.4% just one day prior and 87.8% a week ago.
The growing conviction around rate cuts helps explain the unusual phenomenon of gold and the dollar rising in tandem. While a stronger dollar typically pressures gold prices, the prospect of lower interest rates reduces the opportunity cost of holding non-yielding assets like gold. Additionally, rate cuts often signal economic uncertainty or policy accommodation, both of which tend to enhance gold’s appeal as a safe-haven asset.

As investors seek safe-haven assets amid market volatility, gold continues to attract substantial interest.
Silver, traditionally less prominent than gold, has also seen a marked increase following an extended period of underperformance. ‘The market recognizes silver’s dual role as both an industrial metal and a safe-haven asset. Factors such as four consecutive years of global production shortfalls and increased activity in Comex warehouses have contributed to stronger demand. The same time gold’s acceptance as an asset and many funds as opposed to silver has left silver lagging gold but now with a significant close above $41.00 , silver is now in catch up mode it may continue to outperform gold in the month of September.
Copper markets remain stable after recent volatility. President Trump’s announcement exempting refined copper from import tariffs resulted in a sharp, temporary decline in Comex futures. Despite this, copper’s long-term fundamentals are robust, supported by strong global demand for infrastructure, electric vehicles, and renewable energy systems. The exemption provides benefits to major exporters like Chile and Peru, maintaining healthy U.S. inventories. This week, copper prices stabilized at $9,650 per ton, with Comex futures holding a marginal premium relative to LME. Future price movements may be influenced by China’s GDP data; expectations remain bullish over the longer term.
Make sure you keep up with all the latest on the precious metals by staying tuned to the Fox Business Network you can also get the Phil Flynn Daily Trade Levels, and you can open an account by calling 888-264-5665 or by emailing me at pflynn@pricegroup.com.