Written Commentary
SILVER
May silver futures are lower on Friday, bringing weekly losses to over 9%. This decline was driven by growing concerns over global demand and the risk of a global recession in light of an escalating trade war. On Friday, China’s finance ministry revealed plans to impose a 34% tariff on all U.S. goods starting April 10, in response to tariffs announced earlier this week by the Trump administration.
Despite the broader market downturn, silver and other precious metals may see renewed support as recession concerns rise, with traders increasingly anticipating potential Federal Reserve interest rate cuts in the coming months.
Expectations for additional Federal Reserve interest rate cuts will provide support for silver prices in the longer term.
COPPER
While copper prices recently spiked to record highs, they have since pulled back sharply as market uncertainty and broader risk-aversion sentiment take hold. May copper futures are sharply lower on Friday, reflecting an over 10% weekly decline.
This drop was driven by fears that U.S. tariffs and retaliatory actions from trading partners could push the global economy toward recession. China revealed plans to impose a 34% tariff on all U.S. imports starting April 10, alongside export restrictions on rare earth elements, as a countermeasure to US tariffs.
GOLD
June gold futures are lower with much of the weakness linked to investors having the need to raise funds by selling precious metals in order to finance equity positions. China’s decision to impose a 34% tariff on all U.S. imports in response to President Trump’s tariffs has raised concerns about global economic stability and inflation.
Gold stockpiles in COMEX warehouses across the U.S. have surged in recent months, driven by concerns that tariffs could disrupt shipments.
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