If we were to compile a list of global risks and opportunities, climate change would plausibly top the risks, while AI could easily lead the opportunities (though, depending on one’s perspective, AI might also feature prominently among the risks).
Mitigating the risk and seizing the opportunity depend on a common commodity: copper. Copper is a vital part of the infrastructure needed to power AI data centres. Copper is also critical for renewable energy infrastructure, from green energy sources to electric vehicles. (Indeed, demand already threatens to outstrip supply to the point that AI is arguably cornering much of the copper need for green energy.)
In short, the world – and advanced economies in particular – is hungry for copper, and a lot of it. High demand could drive higher prices.
To that we can now add the news that the White House could expedite tariffs on copper, potentially imposing import tariffs in a matter of weeks.
The combination of factors has enabled trading houses to claim, not implausibly, that copper could reach record prices in 2025.
The meaning of metal
Copper is, of course, not the only commodity affected by the threat of trade wars. Trump’s tariffs have helped boost demand for gold, as investors seek a safe haven asset amid market uncertainty.
However, unlike copper, gold isn’t subject to tariffs. Instead, the yellow metal is often viewed as a hedge against inflation and geopolitical risk.
To put it simplistically, demand for gold can signify economic uncertainty and an elevated risk landscape. Whereas demand for copper is often a sign of robust economic growth. In other words, copper has historically often been pro-cyclical, and gold has historically often been used as a hedge against uncertainty.
We can see why traders would be interested in both commodities.
Multi-asset advantage
For traders, these dynamics present opportunities for hedging and speculation. However, this dynamism brings risk as well as opportunity.
We can also appreciate why a multi-asset strategy is not merely a question of diversity for diversity’s sake. Investors will anticipate that assets will respond to changing markets conditions in varying ways. And professional traders will attempt to take advantage of these complex dynamics by deploying advanced strategies to maximise returns and hedge against risks.
Successful trading depends on anticipating how markets shift and positioning accordingly. And that requires access to a truly multi-asset trading platform.
Flexible liquidity for a dynamic market
With market forces driving both risk and opportunity, traders need agile platform that allows them to respond quickly and seize opportunity.
Finalto has designed an integrated solution designed to help navigate complex market conditions. Our customised offering delivers best-in-class liquidity, execution and prime broker solutions across multiple asset classes cross-margined on a single account.
Our precious metals offering is remarkably flexible, offering multi-currency pricing in gold, with gold in ounces, grams and taels. We also offer silver priced in USD, EUR and SGD.
Finalto’s metal offering also includes the five most traded base metals globally, with rolling spot copper, plus aluminium, nickel, lead and zinc.
In a fast-moving, increasingly uncertain world, the right trading and risk management solutions can make all the difference. Get in touch to learn more about Finalto’s tailored liquidity solutions, and how we can connect your business to the world’s markets.
All opinions, news, research, analysis, prices or other information is provided as general market commentary and not as investment advice and all potential results discussed are not guaranteed to be achieved. The information may have been derived from publicly available sources, company reports, personal research, or surveys. Past performance is not indicative of future performance. Trading carries risk of capital loss. Service available to professional clients only.
