Tariffs, Rate Cuts, and Commodities in Flux - Marc Chandler and Darrell Fletcher on the KE Report
U.S. macro cracks widen, commodities face whiplash, and precious metals lead as global investors shift into hard assets.
This week’s KE Report Weekend Show dives deep into the growing crosscurrents hitting the U.S. economy and commodity markets. In the first half, Marc Chandler (Bannockburn Global Forex) unpacks how weak job data and rising tariff risks are driving rate cut expectations and reshaping the dollar outlook. In the back half, Darrell Fletcher (Bannockburn Capital Markets) gives us a trader’s eye view on the violent copper repricing, where energy markets may head next, and why metals like platinum and tin are gaining momentum.
Key macro shift: Fed pivot now imminent as US jobs and inflation diverge
Marc Chandler says the weak July jobs report is “a watershed,” triggering expectations of at least two rate cuts by year-end.
“The pendulum swung. We’re pricing in easing again, and that spells trouble for the dollar.”
Market insight: July marked the first USD rally since Trump’s inauguration - but that strength is already fading.
Investor takeaway: Position for a weakening dollar and prepare portfolios for monetary easing.
Gold and tariffs: Financial asset or taxable import?
Customs confusion sparked a sharp divergence between gold spot and futures, with $100 spreads at one point.
Chandler warns the reinterpretation of gold as a “good” could lead to surprise tariffs and market distortion.
“I suspect there's enough people in that market to be terribly annoyed by this.”
Takeaway: Short-term noise aside, gold continues to attract capital as a hedge against U.S. policy chaos.
Copper chaos: Pricing collapsed in hours, but long-term uptrend intact
Darrell Fletcher breaks down the copper arb collapse after the U.S. clarified that refined copper would be exempt from tariffs.
“We dropped from a $1.36 premium to 5 cents in a day. That’s historic.”
Trend alert: Despite volatility, 3-year copper prices are still up 20%. Futures curves point toward $5+.
Actionable insight: Use pullbacks to build positions in high-quality copper producers.
Energy under pressure: Gas and oil pricing test key levels
Natural gas struggles to hold above $3, despite bullish storage data.
Fletcher expects WTI crude to test $60, citing persistent oversupply.
“Fundamentals aren’t strong enough to support a lasting rally - yet.”
Watchlist: LNG export capacity will support prices longer term, but near-term pain remains.
Silver, platinum, and tin catching investor flows
Precious metals are benefitting from global rotation into hard assets, according to Fletcher.
“Gold’s been consolidating; now we’re seeing a spillover into silver and platinum.”
Tin is up 16% YTD, leading among base metals - thanks to electronics demand.
Investor tip: Watch platinum deficits and silver’s run toward $50 in 2026.
Listen to the full interview here
Tune in to hear the full breakdown of market volatility, rate policy pivots, and how to position across copper, gold, natural gas, and beyond.
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