Written Commentary
COPPER
May copper futures continue to advance, hitting a more than two-week high as the U.S. dollar weakened recently in light of growing political and economic uncertainty in the U.S.
President Donald Trump continues to call for immediate interest rate cuts.
Global trade tensions persist, with China accusing the U.S. of weaponizing tariffs. Copper found support from speculation that upcoming U.S. tariffs could target copper imports, adding further uncertainty to the market.
Prospects of easier credit conditions from the Federal Open Market Committee remain an underlying support long term influence on copper.
GOLD
June gold futures on Tuesday hit a new all-time high as investors flocked to safe-haven assets in light of mounting economic uncertainty. So far this year gold has jumped more than 30%.
Much of the support for the gold market can be linked to U.S. dollar weakness. Yesterday the greenback declined to a three-year low as the outlook for the U.S. economy became more clouded, especially in light of President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell. A recent interest rate cut by the European Central Bank further increased gold’s appeal in an environment of diminishing yields.
Yesterday, Federal Reserve Bank of Chicago President Austan Goolsbee said, “We’ve got short-run inflation expectations up but not long-term.”
Central banks continue to buy gold.
SILVER
May silver futures are higher on Tuesday as investors continue to move funds into the safety of precious metals. In the near term the upside appears to be limited due to stalled U.S.-China trade talks. At the same time, President Donald Trump’s push for immediate interest rate cuts, which raised alarms about the Fed’s independence. Silver prices remain elevated, supported by ongoing market uncertainty and sustained demand for geopolitical and policy risk hedges.
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