Written Commentary
GOLD
April gold futures advanced to a new all-time high. This surge was fueled by increased safe-haven demand, as geopolitical tensions and trade uncertainties escalated. On the trade front, U.S. tariffs, including a 25% levy on steel and aluminum since February, have heightened tensions, with additional duties set to take effect on April 2.
Central banks continue to be substantial buyers of gold.
SILVER
May silver futures are lower after yesterday advancing to the highest level since late October, as investors moved funds into safe-haven assets in light of escalating tariff tensions and increasing expectations of Federal Reserve interest rate cuts after last week’s U.S. inflation data. U.S. producer prices remained flat in February, and consumer inflation rose only 0.2%, falling short of expectations. Additionally, jobless claims dropped again last week, signaling a resilient labor market.
The long-term outlook for silver Is bullish in light of the supply-demand situation. Over the past four years, silver supply has consistently fallen short of meeting demand. Industrial applications account for the majority of demand, making up approximately 60% of total silver consumption.
COPPER
May copper futures advanced and are trading at the highest levels since May of 2024. Copper futures prices continued to reflect signs of supply constraints, with inventories at both the London and Shanghai exchanges dropping.
On the demand side, optimism is increasing after China introduced a special action plan aimed at boosting consumer spending, which improved the economic outlook for the world’s largest copper consumer. Prices were also supported by expectations that President Donald Trump might impose tariffs on copper imports, potentially straining the already limited capacity of domestic smelters. The U.S. currently imports nearly half of its copper supply, relying on only two major smelters for domestic production. While reports suggest these tariffs may be implemented later this year, the recent increase in base metal tariffs on Canada has increased concerns that copper tariffs could be enacted sooner than expected.
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