Some say as copper goes so goes the economy. Don't know if that is true, but copper has broken to the upside after about 7 weeks of sideways charting.
Thanks, cutworm!
That makes sense in many situations. I don't follow copper as close as energies and grains so take my comments with a grain of salt.
The explanation that I read, at this link below too is that it's a "supply shock" from a major supplier and there is no surplus when news comes out, like we have recently, of LESS supply.
The other thing is that Trump's tariffs and other policies are a big negative on the economy right now. His tariffs are inflationary, including for copper prices. If copper was giving us a signal of economic strength to come, the Fed(that looks at all the major indicators) wouldn't be in a weakening economy mode. Reducing interest rates to stimulate the weakening Trump economy but waiting longer than they should have because they were fearful of the inflationary tariffs that lower interest rates will make even worse.
Previous thread:
https://tradingeconomics.com/commodity/copper
The disruption underscores the market’s vulnerability to supply shocks
1. 1 year: Tariffs spike high, (panic) buying exhaustion. Spike lower on tariffs news. Holding the uptrend!
2. 10 year: Still in a long term, supply shortage induced uptrend
Previous thread on Copper:
Trump spikes copper to record highs
16 responses |
Started by metmike - July 8, 2025, 7:31 p.m.
The bullish economic news today was interesting.
I'm concerned that going ahead, it will continue to get tougher and tougher to get legit information from this administration and the realms they influence as they make things up that they want people to believe in, then repeat them, in sync with Fox over and over.
Trump fires people that won't do that for him and replaces them with people that will.
The Fed is supposed to be independent and has been fighting him about that.
Published
Sep 25, 2025 at 08:58 AM ED
https://www.newsweek.com/trump-gets-surprise-boost-on-economy-10740222