Written Commentary
COPPER
July copper futures are lower in light of the decline in the gross domestic product in the first quarter. However, the decline in copper prices was partially offset by concerns over supply constraints in the U.S. after President Donald Trump launched an investigation into potential tariffs on copper imports, which could strain already limited domestic smelting capacity and intensify bidding competition.
This uncertainty has widened the premium of U.S. copper futures over equivalent contracts on the London Metal Exchange, reviving a surge in the spread after recent price swings earlier in April.
GOLD
June gold futures are lower extending recent declines as easing concerns about U.S. tariffs reduced demand for safe-haven assets. On Tuesday, President Donald Trump signed executive orders aimed at preventing new tariffs on foreign-made cars and cutting duties on imported auto parts used in American manufacturing. Commerce Secretary Howard Lutnick also announced progress in trade talks with an unnamed country. Despite the pullback, gold remains on course for its fourth consecutive monthly gain.
Additional support came from strong inflows into gold-backed ETFs, continued central bank buying and signs of increased speculative interest in China.
SILVER
July silver futures are lower in light of potential weaker industrial demand in light of this morning’s weak gross domestic product report. Investors are looking for direction in an atmosphere of uncertainty over U.S.-China trade relations and upcoming U.S. economic data. Although it is unclear whether formal talks are underway, both Washington and Beijing have expressed a willingness to reduce tensions, easing some concerns over the trade war’s economic impact. At the same time, U.S. Treasury Secretary Scott Bessent said several key trading partners had presented “very good” tariff proposals, adding that a trade deal with India could be announced soon.
Despite today’s pressure, silver prices remain elevated this year and are supported by prospects of a more accommodative Federal Open Market Committee. The Federal Reserve is anticipated to lower its fed funds rate by 25 basis points four times this year.
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