Summary:

1. Trump’s Tariff Concerns Spark Turmoil in Silver and Copper Markets
2. U.S. Job Postings Hit Nine-Year Low
3. Eurozone Retail Sales Edge Up Slightly in November
4. Federal Reserve Policymakers Signal Stable Interest Rates for Now

Trump’s Tariff Concerns Spark Turmoil in Silver and Copper Markets

Silver and copper prices surged above international benchmark levels as traders intensified bets that President Trump would impose hefty tariffs on metals. COMEX silver futures traded at $0.90 per ounce above spot bullion prices set in London on Thursday, nearing December highs. Similarly, COMEX copper traded at $623 per ton above equivalent futures on the London Metal Exchange, approaching record levels seen during last year’s historic short squeeze that disrupted the global copper market.

Traders have accelerated shipments of copper to U.S. warehouses to capitalize on price increases since last year. Similar efforts have been underway since New York silver prices began rising. Ole Hansen, Head of Commodity Strategy, stated: “Investors worldwide started the year seeking protection from potential rising inflation, financial debt concerns, and the unpredictability of Trump’s actions.” He added, “The sudden rise in exchange prices is certainly part of the Trump unpredictability story.”

U.S. Job Postings Hit Nine-Year Low

A report last Thursday revealed that job postings by U.S. employers last year hit their lowest level since 2015, highlighting a slowdown in job growth during that period. Challenger, Gray & Christmas, a global employment firm, reported that companies announced numerous hiring plans last year, marking a 1.3% decrease compared to 2023.

Job postings also fell in November. Andrew Challenger, Senior Vice President at Challenger, Gray & Christmas, said: “The slower hiring pace reflects ongoing uncertainty in economic conditions and employers’ cautious approach to expansion. Most employers anticipate further uncertainty with the incoming administration, leading to slower hiring trends.”

Eurozone Retail Sales Edge Up Slightly in November

In November 2024, seasonally adjusted retail trade volume rose by 0.1% in the eurozone and 0.2% in the EU compared to October 2024, according to Eurostat data. This points to a modest recovery in the retail market. However, retail trade volume declined in both the eurozone and the EU in October 2024 compared to the previous month.

On an annual basis, the retail sales index for November 2024 showed a 1.2% growth in the eurozone and 1.5% in the EU, indicating a slow market recovery after a period of volatility.

Federal Reserve Policymakers Signal Stable Interest Rates for Now

Several Federal Reserve officials confirmed last Thursday that interest rates are likely to remain unchanged for an extended period unless there is a significant slowdown in inflation. Boston Fed President Susan Collins stated that slowing the pace of rate cuts was prudent due to “considerable uncertainty” regarding U.S. economic forecasts.

She emphasized that Fed policies are ready to adapt to changing conditions, but rates will remain elevated if inflation shows no significant progress. The upcoming Trump administration and Republican-controlled Congress may introduce new economic policies that could alter the economic trajectory, though it is too early to assess their precise impact. Federal Reserve Governor Michelle Bowman also indicated a cautious and gradual approach to policy adjustments, noting that persistent inflation risks justify a slower pace for rate cuts.