Fluctuations in Us Copper and Platinum Prices Suggest Buying Opportunities

美国铜价和铂价格波动,意味着购入机会
Published on: Jan 15, 2025
Author: Amy Liu

Recently, there has been a significant price disparity in metals, including copper, silver, and platinum, between London and New York, alongside an expanding price gap for oil between the U.S. and Canada. This is attributed to traders becoming increasingly optimistic that President Donald Trump will impose tariffs on imported goods. Amid the growing uncertainty and concerns surrounding Trump’s global trade policies, the volatility in U.S. metal and oil prices presents traders with opportunities to purchase foreign products at lower prices and import them into the U.S.

Max Layton, an analyst at Citigroup, noted that the market is pricing in a higher probability of the U.S. imposing tariffs on imported goods—whether general, specific to certain countries, or targeting key minerals. Therefore, analysts recommend using U.S. contracts to hedge against broad tariff risks.

Trump has repeatedly stated his intention to impose tariffs of 10% to 20% on all foreign goods, with tariffs on products from China potentially reaching 60% or more. Reports indicated that members of Trump’s new economic team are discussing a month-by-month gradual increase in tariffs as a strategy to enhance negotiation leverage while avoiding a surge in inflation.

The differences in oil and aluminum prices reflect the potential implementation of country-specific tariffs on Canada.

Analysts believe that platinum is the metal most likely to be affected by broad tariffs. The U.S. is a substantial net importer of platinum, with very limited imports from countries that have free trade agreements with the U.S. Platinum is used in catalytic converters for diesel vehicles.

According to analysts, gold and silver may be exempt from broad tariffs due to their monetary properties as legal tender. Given the status of gold as a reserve asset, the likelihood of imposing tariffs on gold imports is very low.

Analysts have stated that if a 25% tariff (including energy tariffs) is imposed on Canada, U.S. refiners and consumers may face rising prices for crude oil, gasoline, and diesel.

Copper Gold Oil & Gas Platinum