Deer In the Headlights. Manic Metals Report 08/06/2025

Ever since the copper market’s epic one-day historic crash, traders are acting like deer caught in the headlights. While many are tempted to buy this market because of the long-term, undeniably bullish fundamentals, the short-term fundamentals changed after President Trump surprised them by offering exemptions on some types of copper imports. Remember, U.S. importers were importing copper like crazy to build up supplies ahead of the tariffs President Trump was going to put in place, and this caught the market by surprise. And while in the short term the copper market is undecided and this sell-off of the sideways pattern could end badly, the reality is that the long-term outlook continues to look very bright.
Here’s some electrifying news! Head lines are buzzing about the U.S. data center power demand possibly doubling and reaching 12% of the nation’s electricity use by 2028, all thanks to the incredible boom in artificial intelligence.
And there’s more: Energy Secretary Chris Wright just shared that America is bringing a whopping 1.3 gigawatts of new natural gas power online for our electric grid, and even postponing the retirement of a 297 MW coal unit. In his words, “This is how we energize the nation to fuel America’s next industrial surge”—and honestly, it’s hard not to get pumped about the future of American energy!
And because of the artificial intelligence use we’re going to need an awful lot of copper to rebuild the infrastructure to meet the demands going forward.
Supply constraints may be emerging in China. According to Bloomberg News, the country’s copper smelters are potentially entering a pivotal phase due to ongoing shortages of ore, which may compel them to reduce output from record highs. Research firm Shanghai Metals Market estimates this month’s production at 1.168 million tons, representing a 0.5% decrease from its peak in July, with an additional decline anticipated for September. While the copper industry has experienced less regulatory restrictions compared to other sectors, profitability has been significantly affected by limited availability of both mined ore and copper scrap.
Precious metals like gold and silver are showing strength in the last couple of days and the uncertainty surrounding the jobs numbers and the increasing likelihood that the vet’s going to have to cut interest rates of course one of the biggest disappointments in precious metals has been silver but it could be showing signs that it’s ready to regain its silverly silver cloud outlook. Rashad Hajiyev points out that the gold to silver ratio (GTS) completed its counter trend rally and now headed to its immediate support around 79 area. A gold price around all-time high $3,500 and GTS at 79 suggests $44 silver price. He  believes, silver is set to rally to $44 by the end of the next week.
And one of the things that we’ve been recommending to our clients has been silver options and they had a really good week last week I still liked the silver options as a possibility i think if you look at the platinum and the palladium they look at a very good value level as well as platinum and palladium could gain if president trump’s puts tougher sanctions on Russia.
To keep up with the latest moves on metals and the Federal Reserve, stay tuned to the Fox Business Network because that’s the only network in America that’s truly invested in you. You can also get answers to all your metals needs and questions by just calling 888-264-5665. You can also email me at pflynn@pricegroup.com and make sure that you get signed up for the daily trade levels. It’s also a great time to open up your trading account—do that today.

Thanks,