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We’re starting to see some manic moves in the metals this morning levels after surging higher overnight being led by copper reversed after reports from CNN that President Trump is poised to declare an emergency so he can immediately put tariffs on other countries.

Tariff talk have proven to be bullish for the dollar because every time we hear a report that we’re going to put tariffs on the dollar surges every time there’s reports that Trump may back off of it the dollar sells off. Yet reading the CNN story, you must wonder if this is really what was said.
Read carefully.
CNN wrote “President-elect Donald Trump is considering declaring a national economic emergency to provide legal justification for a large swath of universal tariffs on allies and adversaries, four sources familiar with the matter told CNN, as Trump seeks to reset the global balance of trade in his second term.
The declaration would allow Trump to construct a new tariff program by using the International Economic Emergency Powers Act, known as “IEEPA,” which unilaterally authorizes a president to manage imports during a national emergency.

Trump, one of the sources noted, has a fondness for the law, since it grants wide-ranging jurisdiction over how tariffs are implemented without strict requirements to prove the tariffs are needed on national security grounds. “Nothing is off the table,” said a second source familiar with the matter, acknowledging the robust discussion over declaring a national emergency that has taken place.:
It’s kind of interesting though because the Washington Post report that came out a few days ago caused a dollar to sell off and that Washington Post story basically was denied.
Reuters reported that U.S. President-elect Donald Trump on Monday denied the report that said his aides were exploring tariff plans that would only cover critical imports, deepening uncertainty among business leaders about future U.S. trade policies. Trump responded on his Truth Social platform after the Washington Post cited three sources familiar with the matter as saying that Trump aides were exploring a narrower approach to tariffs, focused on certain critical sectors.

It appears that the market believes that trump’s tariffs will be inflationary I think the market is overstating those risks but day-to-day and the metals were going to be moving on that perception for the foreseeable future in the mean time when we look at the precious metals the fundamentals are still very bullish central bank buying around the globe continues to be strong alternative investments are still in demand so the setup for gold looks to be very solid we still target $3000 this year strong manufacturing data in the US helped the copper market obviously the dollar fluctuations has created some uncertainties but the chart is looking very much like a bottom seasonal factor should start kicking in and copper could have put in a major bottom
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