Written Commentary
SILVER
Silver futures are higher, following gains from the previous session, as growing bets on a Fed interest rate cut broadened its appeal. The dollar’s pullback and falling Treasury yields have further buoyed silver’s appeal. Elsewhere, investors are also weighing the broader economic impact of President Donald Trump’s sweeping retaliatory tariffs on growth and inflation.
For silver, managed money traders were net sellers of 1,631 contracts, reducing their net long to 43,633.
The long-term outlook for silver remains positive, driven by its essential role in semiconductors, solar panels, and other clean-energy technologies, sectors that continue to attract substantial global investment. That demand has remained robust despite broad headwinds faced in the last few months as a result of tariffs. South Korea’s exports rebounded in June largely on brisk semiconductor shipments, indicating the importance of and demand for the technology, despite challenges from higher US tariffs weighing on global trade. Recent data highlights this trend: China significantly increased its wind and solar capacity in the first quarter of 2025, while solar power generation in Europe surged 30% year-over-year during the same period.
COPPER
Copper futures are higher after a fatal mining collapse in Chile sparked supply fears, although the metal is hovering around its lowest levels since early April amid concerns that US inventories will weaken short-term demand. Long-term gains in copper could also be limited over concerns of surpluses in the market. The global refined copper market showed a 97,000 metric ton surplus in May, compared with an 80,000 metric ton deficit in April. Further weighing on sentiment are signs of weakening global demand, with China’s Yangshan copper premium falling by half since its May peak.
Last week, copper plunged more than 30% after President Donald Trump announced that new US tariffs would only apply to semi-finished products like wires and pipes, exempting key imports such as ore, cathodes, and concentrates, which make up the bulk of copper inflows.
Friday’s Commitments of Traders Report showed managed money traders were net sellers of 654 contracts of copper for the week ending July 29, reducing their net long to 35,526.
GOLD
Gold futures are higher, supported by a weaker dollar, bets of a Fed rate cut, and investor worries over the US economy following disappointing labor data on Friday. Employers added 73,000 jobs last month, below the 110,000 expected by economists, while May and June saw revisions that took out 258,000 jobs. Job growth in the past three months was the lowest since 2010, except during the peak months of the pandemic. The report also showed that hiring has been particularly weak in the sectors most sensitive to tariffs and the ups and downs of the economy. From April to July, payrolls fell in mining and logging, manufacturing, wholesale trade and retail trade, while hiring has slowed significantly in leisure and hospitality. The weak data spurred markets to increase bets that the Fed will cut rates at its September meeting and beyond.
Friday’s Commitments of Traders Report showed managed money traders were net sellers of 28,021 contracts of gold for the week ending July 29, reducing their net long to 142,846.
President Trump last week unveiled new tariff rates, ranging from 10% to 41%, on imports from dozens of countries, set to take effect on August 7, rekindling global trade tensions and offering further support for gold as well.
Interested in more futures markets? Explore our Market Dashboards here.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
