Trump, tariffs and metal prices.

After all the turmoil, related to the introduction of trade tariffs for steel and other products by president Trump / the US Government, we see some interesting directions in the various prices in the metal markets.

On the one side we look at the markets of precious metals, being Gold, Silver and Platinum:

Precious Metals:
What we see in this a peak in the price of gold. This probably also due to higher interest rates, but also after the introduction of the trade tariffs a continuously higher price level. The safe haven is showing its strength!
Looking at Silver we see some kind of reaction, but prices remain within a certain bandwidth over the last months and does not reach over the price level of January this year.
Platinum is showing a steady price in March and looks if it is not really affected by the introduction of trade tariffs or higher interest rates. This probably because platinum is considered as an industrial commodity.

Base Metals:
Looking at the base metals, like Zinc, Lead, Nickel, Copper and Steel we notice a drop in the various price levels. Specially Copper is trading lower.

What are these price levels telling us.

Is the demand for these metals dropping? I wouldn’t think so, looking at the present worldwide economic situation.
Are the markets waiting on how this steel trade tariffs issue plays out and are prices therefore currently lower?

These metals are the backbone of economic growth. They are needed in various way of construction and industrial usage.
Normally a drop in prices of these metals could mean a drop in the economic growth, however we don’t see that yet.
If the economic growth remains high, combined with lower prices this could mean a acceleration in economic growth.

Could this be intentional? Or is something else going on in these markets.

I will leave it here and I have to reflect on this present price drop of the base metals.

Keep your eyes open. Something is going on around here.

Enjoy!!