Written Commentary
GOLD
June gold futures are lower as flight to quality longs are being liquidated. Traders are growing hopeful that tariff pressures may have peaked under President Donald Trump, following his remarks on Wednesday that suggested potential trade agreements with India, Japan and South Korea, and expressing confidence in a possible deal with China.
in addition, a stronger U.S. dollar further pressured gold by making it more expensive for holders of other currencies. Investors are now focused on Friday’s non-farm payrolls report for clues on the Federal Reserve’s policy stance. Despite recent losses, gold gained over 5.0% in the previous month, which is its fourth consecutive monthly advance.
Despite today’s pressure, the long-term trend for gold is higher.
COPPER
July copper futures are higher on Thursday after a sharp drop in the previous session, as signs of progress in trade negotiations that lessens the risk of a global economic slowdown improved market sentiment.
Copper prices declined more than 5.0% on Wednesday due to disappointing U.S. GDP data. However, the decline in copper prices was limited by concerns over supply constraints in the U.S. after President Donald Trump launched an investigation into potential tariffs on copper imports, which could strain already limited domestic smelting capacity and intensify bidding competition.
This uncertainty has widened the premium of U.S. copper futures over equivalent contracts on the London Metal Exchange.
SILVER
July silver futures are lower as easing global trade tensions dampened demand for safe-haven assets. Sentiment shifted after President Donald Trump signaled potential trade agreements with India, Japan, and South Korea, and voiced optimism about a deal with China.
At the same time, silver’s industrial demand outlook came under pressure in light of weaker economic data from major economies. It was reported yesterday that the U.S. economy unexpectedly contracted by 0.3% on an annualized basis in the first quarter.
Despite today’s pressure, silver prices remain elevated this year and are supported by prospects of a more accommodative Federal Open Market Committee.
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