Written Commentary
GOLD
April gold futures were under pressure in the overnight trade due to flight to quality long liquidation. A stronger U.S. dollar also tended to put pressure on gold futures.
SILVER
May silver futures are higher. The precious metal’s price was influenced by ongoing trade tensions and investors’ anticipation of U.S. inflation data, which could provide clues on the Federal Reserve’s next policy move. Market uncertainty increased after President Donald Trump warned that Canada might soon face retaliatory tariffs on dairy and lumber.
The long-term outlook for silver is bullish in light of the supply-demand situation. Over the past four years, silver supply has consistently fallen short of meeting demand. Industrial applications account for the majority of demand, making up approximately 60% of total silver consumption.
COPPER
Copper futures surged, reaching a new nine-month high due to ongoing concerns that U.S. President Trump may impose tariffs on copper. This move would strain the limited capacity of local smelters. The U.S. remains dependent on imports for nearly half of its copper and has only two major smelters in operation.
President Trump recently signed an executive order to review copper imports, following earlier remarks where he indicated potential tariffs on the red metal during a speech to Congress.
In China, supply remains abundant, with treatment charges for smelters still below zero, reflecting the significant overcapacity in refined copper production from the world’s leading producer.
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