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The magnificent 7 tech wreck coupled with an unwinding of the Japanese yen carry trade has caused massive fluctuations and both the precious and industrial metals the last couple of days.

Copper has taken it on the chin more than any of them mainly because of rising concerns of a hard landing in the US economy coupled with the fact that the Chinese industrial sector seems to be shaky at the very least. That comes even as the long-term path has global demand for copper to break records, metal switching has caused some reevaluation. The short-term focus on the global economy and stock market jitters it’s going to keep this market under pressure but at the same time from a long-term viewpoint at a value range.

Tech of course uses a lot of metals and silver is being more viewed as an industrial metal and the concerns at the tech wreck will lower demand has eased concerns. Yet the spread between the gold and the silver continues to be pushed out of whack as traders have move to gold for some haven buying not only because of the concerns about tech but the concerns of a potential global war. And the supply of Gold may tighten on reports that the UAE may shout some gold mines.

Bloomberg is reporting that “he United Arab Emirates suspended activities at 32 gold refineries as part of an effort to curb money laundering.
The government is “intensifying inspection campaigns” at plants as it cracks down on financial crimes, according to a statement from the Ministry of Economy. The shuttered facilities — which represent about 5% of the UAE’s gold sector — will be halted until Oct. 24.

Officials determined that the plants committed a total of 256 violations, including not taking the necessary steps to identify risks, and not examining customer and transaction databases against names on terrorism watchlists.
And you thought it was just Bit Coin.

This comes as KITCO news points out that “ Even as equities stumble, macroeconomic fears mount, and gold outperforms all commodities and most other assets with 16% gains in 2024, most portfolio managers still have small to non-existent exposure to the precious metal, the latest data from Asset Risk Consultants (ARC) shows.
According to the latest quarterly ARC Market Sentiment survey, 75% of the 83 managers who responded had either no gold exposure or a weighting less than 2.5% within their typical ‘steady growth’ investment solution. Not one manager had gold exposure above 10%.

Platinum and palladium also are suggesting that the selloff in copper is probably overdone with the expectation that the Fed will cut rates in September and be more aggressive on rate cuts in the future should put a bottom in the metals eventually we believe that if the stock market finds a little bit of stability and finishes this correction then we should see a big recovery in the metals markets and it could happen very quickly .

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