The week is off to a promising start. Reading straight out of his own playbook, Donald Trump’s initial aggressive posturing is now giving way to softer tones. On Monday, the president once again hinted that the incoming tariff regime may not be as harsh as originally stated. The White House is apparently planning on taking a narrower approach, potentially allowing some countries to escape the sweeping tariff plan. Music to the ears of US indices, which all closed significantly higher on Monday and carried over the momentum into the following session.
The Dollar regained its composure early this week, offering currency markets at large some much needed stability. Movements in currency pairs have been marginal but have slightly favoured the Greenback so far. The Euro is struggling to hold onto $1.08 while the Yen is once again oscillating around the 150 mark. Cryptocurrencies are cautiously optimistic, with Bitcoin flatlining just under $88k at the time of writing.
Gold finally eased off this week following its record-breaking run and is now hovering around $3,020 an ounce. That said, the more interesting developments are arguably occurring in some of the lesser metals, particularly silver and copper. The threat of tariffs levied against metals have prompted supply concerns, triggering massive imports of copper into the US and pushing valuations to record highs. The price of copper soared past $5.30 per pound earlier today before reconsolidating.
Silver markets also perked up this week, with prices rising 2.1% yesterday to $33.7 an ounce. The move appears to have captured the attentions of traders and long-term investors alike. It has long been claimed that silver prices have been manipulated and suppressed, leading to an inexplicable ratio between gold and silver valuations. A reminder that unlike gold, silver prices are nowhere near their all-time high of $49.45 an ounce, a record measured in 1980s Dollars…
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