Written Commentary
GOLD
April gold futures advanced to historical highs, fueled by heightened risk aversion as trade tensions intensify ahead of new U.S. tariffs next week. President Donald Trump recently announced a 25% tariff on foreign-made cars and auto parts, prompting retaliatory threats from the European Union and Canada. This sparked concerns over a potential global trade conflict and economic repercussions.
Gold continues to benefit from strong central bank buying and increased demand for ETFs.
SILVER
May silver futures are higher and are trading at the highest level since October 23, 2024, extending weekly gains to nearly 4.0%, driven by growing global trade tensions that spurred demand for safe-haven assets.
On Wednesday, President Donald Trump revealed plans for a 25% tariff on all imported cars and light trucks, scheduled to take effect in April, along with reciprocal tariffs on countries that impose levies on U.S. goods. These measures, which President Donald Trump promised to enforce throughout his second term, increased concerns about retaliation.
Expectations for additional Federal Reserve interest rate cuts provided support for silver prices. Traders are currently anticipating two quarter-point rate cuts this year, one in June and another in September with the likelihood of a third cut in December increasing.
COPPER
May copper futures are higher on Friday but have pulled back from the record highs made on Wednesday. Recent strength is linked to reports that U.S. President Donald Trump planned to impose tariffs on copper imports within weeks, significantly advancing the original timeline. This news sparked a surge in U.S. copper imports, with recent shipments hitting 500,000 tons, which is well above the typical monthly average of 70,000 tons as traders scrambled to secure supplies before the tariffs take effect.
The surge in U.S. demand has also tightened copper availability in major markets, especially in Asia. U.S. companies are exploring alternative supply sources, especially in South America, to offset the impact of the anticipated tariffs.
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.
