US copper futures surged, hitting multi-decade highs, after President Donald Trump announced a 50% tariff on the metal.
A sharp rise in copper prices can ripple through the entire economy. Since copper is essential for power, construction, electronics, and cars, any cost inflation in the metal can push up prices for homes, electric vehicles, appliances, and even defence equipment. If tariffs make copper more expensive and supply tightens, companies may delay projects, pass costs to consumers, or cut margins—all of which could slow industrial growth and fuel inflation.
While prices have soared in the US, which currently imports nearly 40% of the copper it uses, the London and Shanghai exchanges have not seen the same reaction. “We were bullish on US copper and advising people to be long,” Blanch said. “But I don’t think anyone expected a 50% premium—it was very, very high.”He explained that copper, along with other commodities like gold, has been flowing into the US ahead of the tariff deadline, continuing a pattern seen earlier with aluminium and steel. However, he does not expect new refineries to be built in response to the tariff-induced price differential, citing the near-zero margins between copper ore and refined copper.
On gold, Blanch struck a cautiously optimistic note. While jewellery demand is down 20% globally, central bank buying has provided critical support. “We’ve seen more than a doubling—tripling, in some cases—of central bank gold purchases,” he noted, adding that this public sector buying has helped gold prices edge closer to $3,500. He expects gold could hit $4,000 per ounce in the next 12 months if investor demand rises further.
Blanch was more bullish on other precious metals. He sees silver climbing to $40 per ounce and has a $1,400 target for platinum. “Silver and platinum are our favourite metals in the precious space right now,” he said. He added that even a small shift in jewellery demand from gold to platinum could significantly tighten supply, given how small the platinum market is.
While the broader precious metals outlook remains strong, Blanch made it clear that not all metals are equally favoured. “We don’t like palladium as much… we think platinum will outperform palladium throughout the next few months,” he said.
Watch accompanying video for entire conversation.
