Written Commentary
GOLD
June gold futures hit new all-time highs as investors sought refuge in the precious metal ahead of President Donald Trump’s upcoming tariff implementation, which has intensified concerns about a potential global trade war. President Donald Trump announced that reciprocal tariffs, scheduled to take effect on Wednesday, will apply to all countries, expanding beyond the initial group of 10 to 15 nations. Additional auto tariffs are scheduled for Thursday.
The rally in gold has also been fueled by other factors, including expectations of interest rate cuts, central bank buying, and increased demand for exchange-traded funds.
In the previous session, the yellow metal marked its best quarterly performance since September 1986.
COPPER
May copper futures are steady today after retreating from the record highs reached last previous week. Traders took profits while awaiting updates on potential U.S. tariffs. The red metal recently soared to an all-time high following reports that U.S. President Donald Trump was planning to impose tariffs on copper imports within weeks, significantly advancing the original timeline. This news led to 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 took effect.
SILVER
May silver futures are steady today but remain near 13-year highs as increasing concerns over the escalating global trade war and potential economic consequences increased demand for safe-haven assets like precious metals.
Over the weekend, President Donald Trump reiterated plans to impose reciprocal tariffs on all countries, reportedly urging his advisers to take a tougher stance on trade. Markets are worried that these measures could provoke retaliation from major trading partners.
Expectations for additional Federal Reserve interest rate cuts will provide support for silver prices In the longer term.
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