Written Commentary
COPPER
May copper futures are higher, recovering from a recent three-month low. The recovery followed President Donald Trump’s decision to pause his reciprocal tariff package for 90 days. While copper was initially excluded from the tariffs, the policy imposed a 10% levy on non-retaliating countries and helped ease recession concerns in the world’s largest economy, boosting broader expectations for manufacturing demand.
Despite the recent uptick, copper futures are still down more than 20% from their all-time high of $5.30, reached on March 26. Market sentiment remains cautious as President Trump has indicated plans to introduce copper-specific tariffs in the coming weeks.
Adding to the pressure, the ongoing trade war with China has intensified, with both nations imposing higher tariffs. This escalation is disrupting the flow of copper scrap exports from the U.S. to China, further clouding the outlook for the metal.
GOLD
June gold futures were sharply higher in the overnight trade with follow-through strength after the March consumer price index report was released. The March consumer price index declined 0.1% when a 0.1% increase was expected. The consumer price index excluding food and energy on a month-to-month basis advanced 0.1% when a gain of 0.3% was estimated. In addition, there was some support due to a lower U.S. dollar.
Meanwhile, markets continued to digest the latest FOMC minutes, which show near-unanimous concerns over higher inflation and slower growth. Elsewhere the World Gold Council reported gold-backed ETFs saw inflows of 226.5 metric tons, worth $21.1 billion, in the first quarter.
SILVER
June gold futures were sharply higher in the overnight trade with follow-through strength after the March consumer price index report was released. The March consumer price index declined 0.1% when a 0.1% increase was expected. The consumer price index excluding food and energy on a month-to-month basis advanced 0.1% when a gain of 0.3% was estimated. In addition, there was some support due to a lower U.S. dollar.
Meanwhile, markets continued to digest the latest FOMC minutes, which show near-unanimous concerns over higher inflation and slower growth. Elsewhere the World Gold Council reported gold-backed ETFs saw inflows of 226.5 metric tons, worth $21.1 billion, in the first quarter.
Interested in more futures markets? Explore our Market Dashboards here.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
