Written Commentary
COPPER
May copper futures surged on Wednesday, hitting a new all-time high after reports emerged that U.S. President Donald Trump plans to impose copper import tariffs, significantly advancing the original timeline. Initially, President Trump’s directives indicated copper tariffs would take effect later this year, citing national security concerns.
This announcement prompted a spike in U.S. copper imports, with recent shipments reaching 500,000 tons, which is well above the typical 70,000-ton monthly average as traders attempt to secure supplies before the tariffs take hold.
Adding to the upward pressure are reports that London-listed miner Glencore has declared force majeure on copper shipments from its Chilean Altonorte smelter, where production has been suspended. Operations at Altonorte have capacity to produce 350,000 metric tons of copper a year in anode form. Much of the copper produced in Chile is shipped to the U.S.
GOLD
April gold futures are higher, remaining close to record highs, as its safe-haven appeal persisted in light of growing uncertainty over the upcoming U.S. reciprocal tariffs. Although President Donald Trump’s tariff plan, scheduled to begin on April 2, is expected to be more targeted and limited than previous proposals, the new duties still represent a major escalation for both the U.S. and its trade partners.
On the geopolitical front, the U.S. reached agreements with Ukraine and Russia on Tuesday to halt attacks at sea and on energy targets, with Washington also promising to push for some sanctions relief on Moscow, which slightly diminished the appeal of gold as a safe-haven asset.
Central banks continue to be buyers of gold.
SILVER
May silver futures continue to advance as trade uncertainties and broader economic concerns heightened demand for safe-haven assets. Market sentiment was briefly boosted by expectations that President Donald Trump might adopt a more targeted approach to tariffs before the April 2 deadline. However, his announcement on Monday to impose tariffs on automobiles, pharmaceuticals and other industries contributed to ongoing uncertainty.
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