Copper prices rebounded on Thursday, but silver prices did not, one day after the announcement that Donald Trump will become the 47th President of the United States.
Silver traded at $31.20 an ounce, up about half of a percent on the day but down about 10% over a 10-day trading period. Copper prices, however, rebounded off its Wednesday low of $4.26 an ounce to $4.38, a 2.8% rise that has almost wiped out nearly all election-related losses.
Many in the investment world attributed the drop in industrial metals to investor fears that Trump will begin a tariff war with China and hurt its economy further, which would likely reduce infrastructure-related spending on metals.
Ole Hansen, head of commodity strategy at Saxo Bank, said, “This scenario is expected to bring about the promised tariffs on imported goods, particularly targeting China, potentially triggering a new way of trade tensions and economic disruptions.”
Terry Duffy, chairman and CEO of CME Group, told Fox Business on Wednesday that trading volumes across the board had increased after Trump’s win was secured.
“We are seeing multiple volume explosions in all of our asset classes,” he said. “In the gold market, the volume has basically tripled on a daily basis and it is down 3%.”
Gold prices tumbled about $80 an ounce in response Wednesday. On Thursday, prices remained flat around $2,660 an ounce.
Duffy noted a rise in 10-year treasury yields, marking a notable bear-territory shift on long-term treasuries.
“Traditionally (with gold) that can correlate with rates, but it has taken a bit of a divergence (from rates),” he said.
Augusta Precious Metals(Full Review)
$0 (10 Years)
$50,000
"Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings
Expand Details
Renowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.Goldco (Full Review)
Vary
$25,000
Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee
Expand Details
From precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ yearsAmerican Hartford Gold (Full Review)
Vary
$10,000
American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..