Metals are stock puppets, Bloomberg strategist says

AI desk brief

Bloomberg Intelligence strategist Mike McGlone says metals are effectively being driven by the stock market, calling copper a “stock puppet” that could drop 20-30% if equities correct 10%. On gold, he argues the setup looks “too peakish” and says investors should be cautious, framing the recent move as a warning sign rather than a fresh bullish signal.

He also ties the Fed’s recent rate hike to the inflation fight and says tighter policy is the best way to curb inflation and eventually bring mortgage rates down. McGlone added that a first sign of post-inflation deflation would likely be a stock-market downturn, which could then force the Fed to reverse course.