Written Commentary
GOLD
June gold futures jumped on Monday reaching a record high, driven by strong safe-haven demand in light of escalating global trade tensions and a weakening U.S. dollar. The surge followed President Donald Trump’s directive last week to investigate potential new tariffs on all critical mineral imports.
The U.S. dollar dropped to a three-year low as the outlook for the U.S. economy became more clouded, especially in light of President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell.
A recent interest rate cut by the European Central Bank further increased gold’s appeal in an environment of diminishing yields.
Central banks continue to buy gold.
COPPER
May copper futures advanced on Monday, marking their highest level in more than two weeks, as a weakening U.S. dollar fueled buying interest. The greenback’s decline followed increasing concerns over U.S. economic policy and the Federal Reserve’s independence, especially after President Donald Trump criticized the central bank.
Meanwhile, growing anxiety about the economic impact of the ongoing US – China trade war added to the broader risk-off sentiment copper, which is often regarded as a key indicator of global economic activity.
There was some support from speculation that U.S. tariffs could eventually extend to copper imports.
SILVER
May silver futures rebounded from losses in the previous session as a weakening U.S. dollar boosted safe-haven demand. The greenback faced pressure in light of growing concerns over the direction of U.S. economic policy and questions about the Federal Reserve’s independence.
Further fueling market jitters were escalating U.S. – China trade tensions. Political and economic uncertainties supported silver’s appeal as a store of value during periods of geopolitical and financial stress.
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