Written Commentary
COPPER
May copper futures declined 4% on Thursday, reaching a three-week low after U.S. President Donald Trump unveiled an expansive and more aggressive reciprocal tariff policy. President Trump imposed an additional 34% tariff on China, bringing the total levies on the country to 54%, raising further uncertainty about the economic outlook for the world’s largest copper consumer. While copper prices recently spiked to record highs, they have since pulled back sharply as market uncertainty and broader risk-aversion sentiment take hold.
SILVER
May silver futures are sharply lower, falling to a one-week low, as traders reacted to market uncertainties triggered by President Donald Trump’s tariff policies. Silver faced pressure in the light of a broad selloff in commodities. Meanwhile, U.S. economic data revealed that the manufacturing sector contracted in March, and job openings in February dropped more than expected to 7.57 million. Investors are now focused on Friday’s nonfarm payroll report for additional economic insights.
Expectations for additional Federal Reserve interest rate cuts will provide support for silver prices In the longer term.
GOLD
June gold futures are lower on Thursday, retreating from recent all-time highs. There was some strength in the overnight trade in a flight to quality move following President Donald Trump’s tariff announcement, which sparked heightened risk aversion. Trump introduced a 10% baseline tariff on imports from all countries, with higher rates targeting nations with trade surpluses with the U.S., including China, the EU and Japan.
However, more recent weakness may be linked to investors having the need to raise funds by selling precious metals in order to finance equity positions. Gold prices have been supported by expectations of interest rate cuts, central bank buying and strong demand for gold-backed ETFs, including a 233,000-ounce increase in China’s ETF holdings. Investors are now looking ahead to the U.S. non-farm payrolls report, due on Friday, for further insights into the Federal Reserve’s future monetary policy direction.
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