Silver and copper prices have surged above international benchmark prices as traders intensified their bets that President Trump would impose high tariffs on metals. COMEX silver futures traded at over $0.90 per ounce above spot bullion prices set in London on Thursday, approaching the peak seen in December. Meanwhile, copper traded on COMEX at more than $623 per ton above equivalent futures set on the London Metal Exchange, nearing record levels witnessed during last year’s historic short squeeze that shook the global copper market.
Traders have rushed to ship copper to U.S. warehouses to capitalize on price increases since last year, and similar efforts have been made since silver prices in New York began to rise. Ole Hansen, Head of Commodity Strategy, stated: “Investors worldwide have started the year looking for protection against potential rising inflation, financial debt concerns, and the unpredictability of Trump’s actions.” He added, “The sudden surge in COMEX prices is certainly part of the broader story of Trump’s unpredictability.”
A report last Thursday revealed that job postings by U.S. employers last year were at their lowest since 2015, highlighting a slowdown in job growth during that period. Employment firm Challenger, Gray & Christmas stated that companies announced numerous hiring plans last year, but there was a 1.3% decrease compared to 2023, with job postings declining further in November.
Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, commented: “The slowdown in hiring reflects ongoing uncertainty in economic conditions and a cautious approach by employers toward expansion. Most employers anticipate additional uncertainty with the incoming administration, leading to a slower hiring pace.”
In November 2024, compared to October 2024, seasonally adjusted retail trade volume increased by 0.1% in the Eurozone and 0.2% in the European Union, according to Eurostat data. This indicates a modest recovery in the retail market. However, retail trade volume in both the Eurozone and the EU had declined in October 2024 compared to the previous month.
On an annual basis, the retail sales index for November 2024 showed growth of 1.2% in the Eurozone and 1.5% in the EU, suggesting a slow recovery in the retail market after a period of volatility.
Several Federal Reserve officials confirmed last Thursday that interest rates are likely to remain unchanged for an extended period unless there is a significant decline in inflation. Boston Fed President Susan Collins stated that slowing the pace of rate cuts is a prudent approach due to “considerable uncertainty” regarding U.S. economic outlook.
She emphasized that Fed policies are ready to adjust to changing conditions, but rates will remain high if inflation shows no significant progress. The upcoming Trump administration and a Republican-controlled Congress could introduce new economic policies that may alter the economic trajectory, but it is too early to assess their impact accurately.
Federal Reserve Governor Michelle Bowman noted that she still leans toward a cautious and gradual policy adjustment, emphasizing that persistent inflation risks justify a slower pace of rate cuts.
