Copper’s collapse bugs silver

Trump backing off on copper is hitting all metals. US tariffs are in disarray and are backfiring badly on the US economy and the dollar. The case for gold and silver is even stronger.

With Comex’s August contract running off the board and copper’s collapse it is hardly surprising that precious metals traded lower this week. In European trade this morning, gold was $3294, down $43 from Friday’s close, and silver at $36.48 down $1.65. The gold/silver ratio has returned to 90.

Before observing this week’s action in gold and silver, a comment on copper and other base metals is required. President Trump has relented on US import tariffs on copper ore, concentrates, and cathodes leaving 50% tariffs on imports of semi-finished items such as wires and pipes. Consequently, copper futures fell by 25% this week hitting every paper-traded metal, including silver. Copper’s chart is below: