Written Commentary
COPPER
May copper futures are lower for a second consecutive day as weak economic data from China dampened market sentiment. Data released over the weekend showed that both consumer and producer prices in China declined in February, highlighting ongoing deflationary pressures in the world’s largest copper consumer. Despite Chinese policymakers highlighting their efforts to boost growth during a recent political meeting, the country’s economic outlook remains uncertain, due to concerns about a growing trade conflict with the U.S.
Last week, copper prices advanced to multi-month highs after U.S. President Donald Trump proposed a 25% tariff on copper imports, which is a move that would increase reliance on domestic production.
GOLD
April gold futures are lower despite weakness in the U.S. dollar but stayed close to record highs as ongoing trade tensions continued to influence market sentiment. Investors were focused on upcoming U.S. inflation data this week, which could offer clues about the Federal Reserve’s next policy steps. Adding to the uncertainty, was President Donald Trump suggesting reciprocal tariffs on Canadian dairy and lumber might be on the horizon. This follows the U.S. decision to delay 25% tariffs on certain goods from Canada and Mexico for another month, while Canada’s retaliatory measures remain in force. In addition, China’s tariffs on select U.S. agricultural products took effect today.
SILVER
April silver futures are unchanged on Monday despite a weakening U.S. dollar, as trade tensions continue to dominate headlines. Investors were also awaiting U.S. inflation data for clues about the Federal Reserve’s next policy moves. Market uncertainty increased after President Donald Trump warned that Canada might soon face reciprocal tariffs on dairy and lumber. This follows the U.S. decision to delay 25% tariffs on various Canadian and Mexican goods for a month, while Canada’s retaliatory tariffs remain in effect. Additionally, China’s tariffs on certain U.S. agricultural products took effect today.
Underlying support for silver remains in light of the ongoing geopolitical situation and trade policies, which are likely to bolster demand for safe-haven assets such as silver.
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.
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