Written Commentary
COPPER
May copper futures are lower, pulling back from record highs set in the previous week as traders took profits and waited for updates on potential U.S. tariffs. The red metal hit an all-time high following reports that U.S. President Donald Trump planned to impose copper import tariffs within weeks, significantly advancing the original timeline. This news sparked a surge in U.S. copper imports, with recent shipments hitting 500,000 tons, which is well above the typical monthly average of 70,000 tons as traders scrambled to secure supplies before the tariffs take effect.
U.S. companies are seeking alternative sources, primarily from South America, to lessen the impact of the anticipated tariffs.
GOLD
June gold futures hit new all-time highs. The yellow metal has gained almost 18% in the first quarter putting it on track for its largest quarterly advance in over 38 years. This rally has been fueled by strong demand for safe-haven assets, as investors seek protection in light of growing concerns over the tariff situation. There are reports that suggest President Donald Trump is considering raising trade tariffs on a broader range of countries ahead of his announcement on reciprocal duties scheduled for April 2.
There are no Federal Reserve speakers scheduled for today.
SILVER
May silver futures advanced in the overnight trade, nearing 13-year highs, as rising concerns over the intensifying global trade war and its potential economic impact fueled demand for safe-haven assets such as precious metals. Over the weekend, President Donald Trump reiterated his plans to impose reciprocal tariffs on all countries, reportedly urging his advisers to take a tougher stance on trade.
However, more recently, profit taking has come into the silver market and futures are now lower on the day.
Expectations for additional Federal Reserve interest rate cuts will provide support for silver prices in the longer term. Traders are currently anticipating three quarter-point rate cuts this year.
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