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It’s going to be a rough day on metals when the IMF has the nerve to scold the United States about their path on interest rates cuts and the EU says they’re going to have to pause on their interest rate cut path. This comes on a day where we have chip war concern and cyber outages in general uncertainty surrounding the health the Chinese economy.

Metals both industrial and pressures are getting crushed today on uncertainty surrounding policies that will crack down on trade with China’s surrounding chip technology and rare earth minerals as well as concerns about a rising dollar as the EU stands pat on interest rates. Silver and copper though got walloped.

 Interest Rate cut hopes in the US are still supportive of gold with the market pricing in at 90% chance of in interest rate cut.

Yet the IMF scolded the US saying that the U.S. should delay any interest cut until “late 2024” and said the government should raise taxes to slow the growing federal debt.

So, in other words the IMF is rooting for a US recession how is that going to play out for the rest of the globe, especially with China’s economy the world’s second largest commodity going into the dumpster.

  The industrial metals like copper and silver platinum and palladium plunged on concerns that a chip war with China will cause a big retrenchment in demand for those metals the tech stock fell off yesterday also was not helpful.

Reuters news reported” Chip stocks volatile with China-US spat in focus, Trading in U.S. chip stocks was choppy on Thursday with the Philadelphia semiconductor index managing to close higher after tumbling on Wednesday with its biggest contributions from a handful of heavyweights Nvidia and Broadcom.

Yet the medals are convinced that China’s economy can withstand a chip war with the United States they’re concerned that, how does economy won’t recover even though there is increased chances of more stimulus coming from China at some point and the rumor mill there has been a lot of news coming out of China even reports that were unconfirmed about President Xi’s health.

Also rumors that Japan was warning the US of the possibility that China would be acting more aggressively towards try one didn’t seem to inspire any risk aversion buying.

And then the big picture despite these headwinds in the short term the market is still headed or a shortage of these industrial metals but if we see prices fall too far, we will not see the innovation and investment needed to meet that demand if we get sidetracked with too many of these dramas.

Get to spite the IMF warnings The Fed will cut interest rates by September and despite the IMF’s concerns about taxes the reality is that lower taxes will create growth and that will be your best chance to avoid a recession in the United states also with the possibility of Trump Vance presidency will start to see more innovation in the world and that will increase revenues to the government,

So even though China is struggling right now the possibility of a change in leadership in the US should create a demand surge in the United States as we revitalize our economy

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