Written Commentary
GOLD
April gold futures are steady after this morning’s employment report. Nonfarm payrolls in February increased 151,000, which compares to the anticipated gain of 160,000. Private payrolls were up 140,000 when 143,000 was forecast, and manufacturing payrolls were up 10,000 when an increase of 5,000 was estimated. The unemployment rate was 4.1%, which compares to the consensus estimate of 4.0%, and average hourly earnings increased 0.3% as forecast.
SILVER
May silver futures are lower in light of the weaker than expected U.S. employment numbers. However, underlying support remains in light of the ongoing geopolitical situation and trade policies, which are likely to bolster demand for safe-haven assets such as silver.
The long-term outlook for silver Is bullish in light of the supply-demand situation. Over the past four years, silver supply has consistently fallen short of meeting demand. Industrial applications account for the majority of demand, making up approximately 60% of total silver consumption.
In addition, increasing prospects of the Federal Reserve becoming more accommodative is likely to underpin prices.
COPPER
May copper futures are lower due to this morning’s U.S. employment data, after futures recently advanced to their highest levels in nine months, following U.S. President Donald Trump’s suggestion of imposing a 25% tariff on copper imports. On Wednesday, prices jumped over 5.0% after President Trump’s comments during a joint session of Congress, which contradicted previous statements that any tariffs were still under review by the Department of Commerce and would be introduced later in the year. Such a move would increase dependence on domestic production, which is limited to only two major smelters, since the U.S. imports almost half of its copper.
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