Tariff Shock Hits Global Markets: Copper-Gold Turbo Ignites
The news of an impending tariff shock has significant implications for global markets, particularly in the commodities sector. Copper and gold are in the spotlight for investors, as both metals are showing considerable price movements.
Key Market Developments in Copper
- Global demand for copper is expected to rise by approximately 70% to 50 million tons annually by 2050. The energy sector will play a crucial role, with its share of copper demand projected to increase from around 7% to 23%.
- Significant supply deficits in the copper market are anticipated starting in 2028, with annual deficits of up to nine million tons expected by 2035 due to delays in new mining projects and production bottlenecks.
- Fundamental conditions could lead to initial deficits as early as next year, significantly raising prices.
- The company Abitibi Metals (WKN: A3EWQ3) is currently benefiting strongly from this boom and is seen as a speculative growth opportunity with a high leverage in the copper and gold sector.
Developments in Gold Prices
- The gold price is also showing an upward trend. Analysts at BMO Capital Markets expect an average gold price of about $2,750 per ounce for 2025, with a potential peak in the summer at around $2,850.
- Geopolitical uncertainties and the risk of a multilateral trade war are increasing the attractiveness of gold as a safe haven.
- Precious metals like gold benefit from the rising deglobalization despite the strains on industrial metals.
Significance for Investors
- Markets are preparing for higher prices for copper and gold, offering attractive opportunities for investors.
- Investors should consider specialized mining companies like Abitibi Metals and diversified ETFs.
- The demand for sustainable energy infrastructure strengthens copper’s position while increased uncertainties boost demand for gold.
In summary, the tariff shock leads to a reassessment of the commodities market, with copper and gold experiencing significant price increases. This dynamic presents opportunities and risks that investors should closely monitor.