Another Surge in Copper Prices. Manic Metals Report 02/27/2025

Another Surge in Copper Prices Copper prices experienced significant increases after a highly volatile day, influenced by President Trump’s announcement of potential tariffs on copper to protect domestic demand. Market reactions were further affected by a power outage in Chile, the world’s largest copper producer. Although reports indicate that the mines will resume operations soon, the event highlights the global sensitivity to supply disruptions, which could lead to significant tightening of copper supplies.
The market is taking this threat seriously, particularly following the announcement of 25% duty on steel and aluminum effective March 4th. Copper demand is expected to rise with 2.4% GDP growth and a 3.1% increase in durable goods orders. These positive economic indicators should alleviate concerns about a potential recession.
KitCo Metals reported that News) – The gold market is trading near its session lows, struggling to find any bullish traction following data showing that the U.S. economy continues to expand, albeit at a slower pace, in line with expectations.  The second reading of U.S. Gross Domestic Product showed the economy growing by 2.3% in the final quarter of 2024, the Bureau of Economic Analysis announced Thursday. The data was unchanged from the first reading and in line with economist expectations. However, the report also noted that inflation pressures continue to rise, the preliminary GDP Price Index rose 2.4%, up sharply from the initial estimate of 2.2%. Economists were expecting to see an unchanged reading.

The gold market was already seeing some solid selling pressure ahead of the report and the trend hasn’t shifted in the initial reaction. Spot gold last traded at $2,884.20 an ounce, down 1% on the day.

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