Written Commentary
COPPER
May copper futures are lower on Friday, giving back gains from earlier in the week as a stronger U.S. dollar dampened demand for dollar-denominated commodities. The greenback firmed on signs of easing global trade tensions, with U.S. President Donald Trump affirming that negotiations with China are underway, while talks with Japan and South Korea showed signs of progress. China is also reportedly considering waiving its 125% tariff on certain U.S goods, raising hopes of a further de-escalation in the trade war.
While the trade optimism supported broader market sentiment, it weighed on copper prices by strengthening the U.S. dollar, making the metal more expensive for foreign buyers. Meanwhile, uncertainty persists in light of speculation that copper could be included in future trade measures, adding volatility to the market. This uncertainty has contributed to recent price gains, as traders positioned themselves for potential supply risks.
Prospects of easier credit conditions from the Federal Open Market Committee remain an underlying support long term influence on copper.
GOLD
June gold futures declined as news emerged that China may suspend tariffs on certain U.S. imports, which dampened the metal’s safe-haven appeal. Reports indicate that Beijing is encouraging businesses to identify goods eligible for exemption from their steep 125% tariffs, signaling a possible easing in trade tensions. The move follows President Donald Trump’s assertion that trade negotiations with China are ongoing, contradicting earlier claims from Chinese officials that no talks had taking place.
Despite lower prices today, gold remains up approximately 30% year-to-date.
SILVER
May silver futures are lower as signs of easing global trade tensions supported the U.S. dollar, pressuring precious metals and commodities in general. The greenback strengthened as U.S. President Donald Trump said trade talks with China are ongoing.
Silver prices remain elevated this year and are being supported by prospects of a more accommodative Federal Open Market Committee this year. Meanwhile, Cleveland Federal Reserve Bank President Beth Hammack said a move could come in June if supported by data.
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