The metals market is riding a wave of mixed signals this week. While copper prices dipped after the U.S. clarified that its steep new tariffs won’t hit refined imports, gold surged to fresh highs, fueled by falling bond yields and growing bets on a Federal Reserve rate cut in September. Investors are now weighing trade policy uncertainties against the safe-haven allure of gold in a shifting macro landscape.
Latest Macroeconomic Developments
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U.S. Tariffs: The newly announced 50% tariffs by the United States will not apply to refined copper but only to semi-finished products, sparing direct imports of refined copper.
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Impact on Copper: This clarification led to a price correction in London, where spot copper is now trading at USD 9,611 per ton.
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Gold Supported by Yields: Gold rose to USD 3,350, supported by easing bond yields.
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U.S. Economic Data: The latest employment figures strengthened expectations for a Fed rate cut as early as September, boosting gold’s appeal.
Analyst Recommendations
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Copper: Analysts maintain a neutral short-term position, awaiting greater clarity on U.S. trade policy and global industrial demand.
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Gold: Medium-term bullish bias confirmed, supported by the prospect of rate cuts and gold’s role as a safe haven in an uncertain geopolitical and monetary environment.