Written Commentary
SILVER
May silver futures are higher in light of rising global trade tensions, which boosted demand for safe-haven assets. On Wednesday, President Donald Trump revealed plans to impose a 25% tariff on all imported cars and light trucks, effective April 2, along with reciprocal tariffs on countries that impose tariffs on U.S. goods. The tariffs sparked concerns over possible retaliation, which could strain U.S. economic growth.
Expectations for additional Federal Reserve interests rate cuts supported silver prices. Traders are anticipating two quarter-point cuts this year, one in June and another in September, while the likelihood of a third cut in December is increasing.
COPPER
May copper futures are lower today after yesterday hitting a new all-time high, following reports that U.S. President Donald Trump plans to impose copper import tariffs within weeks, which fast tracks the original timeline. President Donald Trump’s initial proposal had indicated that copper tariffs would be implemented later this year, citing national security concerns. This news sparked a surge in U.S. copper imports, with recent shipments reaching 500,000 tons, which is well above the 70,000-ton monthly average as traders attempted to secure supplies before the tariffs took effect. In response, U.S. companies are seeking alternative copper sources, especially from South America, in an effort to minimize the impact of the tariffs. Further fueling the bullish price trend, Glencore temporarily stopped copper shipments from its Altonorte smelter in Chile in light of a furnace issue at the plant.
GOLD
April gold futures are higher and are close to record high, as its appeal as a safe haven intensified in light of growing concerns over U.S. auto tariffs. The announcement of these tariffs sparked fears of retaliatory measures next week. President Donald Trump reiterated his plan to impose a 25% tariff on all imported cars, light trucks and certain auto parts, which fueled worries of a broader trade war.
Central banks continue to be buyers of gold.
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