Written Commentary
GOLD
June gold futures are lower on Tuesday as easing trade tensions reduced demand for safe-haven assets. U.S. Treasury Secretary Scott Bessent on Monday said several key U.S. trading partners have submitted “very good” tariff proposals, and China’s recent decision to exempt certain American goods from retaliatory tariffs indicates a willingness to de-escalate the situation. There are reports that suggest President Donald Trump is preparing measures to soften the effects of his automotive tariffs.
Investors are now turning their attention to key U.S. economic data due later this week, including the first estimate of the first quarter gross domestic product, March PCE inflation figures and April’s nonfarm payrolls report, which are major indicators for assessing the economy and the Federal Reserve’s next policy moves.
SILVER
July silver futures are higher on Tuesday, steadying after a recent decline as investors await further direction from U.S.-China trade developments and upcoming U.S. economic data. China denied involvement in current trade negotiations with the U.S., contradicting claims by President Donald Trump. At the same time, U.S. Treasury Secretary Scott Bessent said several key trading partners had presented “very good” tariff proposals, adding that a trade deal with India could be announced soon.
Silver prices remain elevated this year and are supported by prospects of a more accommodative Federal Open Market Committee. The Federal Reserve is anticipated to lower its fed funds rate by 25 basis points four times this year.
COPPER
May copper futures are higher and are near the highest level since the start of the month and increasing over 20% since April 9. This rally followed the U.S. government’s suspension of a series of aggressive reciprocal tariffs, which eased concerns over global manufacturing and supply constraints. At the same time, domestic prices were pushed higher by potential targeted tariffs on copper, resulting from a new investigation ordered by President Donald Trump. This raised concerns over the U.S.’s limited smelting capacity and intensified market competition. As a result, the premium on U.S. copper futures over London Metal Exchange contracts widened, fueling renewed momentum.
Prospects of easier credit conditions from the Federal Open Market Committee remain an underlying support long term influence on copper.
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.
