Written Commentary
GOLD
April gold futures are higher, recovering from three days of losses, as investors turned to safe-haven assets in light of ongoing tariff uncertainty. President Donald Trump announced plans to impose tariffs on automobiles, aluminum, and pharmaceuticals, while hinting that some countries might be exempt from reciprocal duties set to take effect next week.
However, the increase in gold prices could be limited by comments from Atlanta Federal Reserve President Raphael Bostic, who expects slower progress on inflation in the coming months and now forecasts only one 25 basis-point rate cut this year.
Futures are also supported by ongoing central bank buying.
COPPER
May copper futures are higher and remain near record highs as traders assess the potential impact of upcoming U.S. tariffs and China’s stimulus efforts. Last month, President Donald Trump signed an executive order to investigate copper imports, citing national security concerns over increasing foreign dependence. This has sparked speculation that a 25% tariff may be imposed soon, leading traders to secure shipments in anticipation of potential restrictions, which could tighten supply elsewhere.
China has set a 5.0% gross domestic product growth target, raised its deficit to a three-decade high, and unveiled plans to stimulate consumption and domestic demand. All of these initiatives could further drive copper demand. The red metal continues to see growing industrial use, fueled by trends in electrification, renewable energy and artificial intelligence.
SILVER
May silver futures are higher on Tuesday, rebounding from recent declines as growing trade uncertainties and broader economic concerns drive demand for safe-haven assets. The market found some relief from hopes that President Donald Trump might adopt a more targeted approach to tariffs before the April 2 deadline. However, his announcement on Monday to impose tariffs on automobiles, pharmaceuticals and other sectors added to the uncertainty.
Silver also benefited from a weakening U.S. dollar and a tightening supply situation.
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