The metals markets are currently under pressure as August 1 approaches, the date when new taxes, including a 50% import duty on certain metals, are expected to come into effect between the United States and its trading partners. In London, copper continues to benefit from positive momentum with the spot price rising to $9,877 per ton. In contrast, gold has slipped slightly (-0.3%) to $3,340 per ounce, weighed down by a stronger US dollar and renewed optimism regarding tariff negotiations between the United States and the European Union. Trade tensions appear to be easing, bolstering hopes for a forthcoming negotiated solution.
Recent developments:
- Approaching August 1, when new taxes, notably a 50% import duty on metals, are set to be implemented.
- Copper prices rising in London, supported by stable demand and expectations of trade tensions.
- Gold slipping slightly, impacted by a strong dollar and prospects of a trade deal between the US and EU.
- Easing trade tensions with positive signs in tariff discussions.
Analyst recommendations:
- Analysts advise caution given the uncertainty around the new taxes, but remain positive on copper due to its strong fundamental backdrop.
- Regarding gold, they recommend monitoring the dollar’s movement and trade negotiations, which could influence price trends in the short term.
- Overall, heightened vigilance is recommended pending confirmation of a durable trade agreement