Written Commentary
SILVER
May silver futures are higher and are coming up against a four-day down trend line. Silver prices pulled back from a five-month high hit on March 28th, as investors awaited President Donald Trump’s announcement of reciprocal tariffs, set to take effect today.
Market participants are weighing concerns over a potential global trade war, which could reduce industrial demand for silver, against silver’s appeal as a safe-haven asset in light of growing fears of a global economic slowdown. Over the weekend, President Donald Trump reiterated plans to impose reciprocal tariffs on all countries and reportedly urged his advisers to adopt a more aggressive trade approach. Investors are now looking ahead to Friday’s nonfarm payroll report for additional economic insights.
Expectations for additional Federal Reserve interest rate cuts will provide support for silver prices In the longer term.
GOLD
June gold futures are higher on Wednesday, edging closer to the record highs seen in the previous session. This increase was driven by heightened risk aversion as markets anticipate further U.S. tariffs that could intensify the global trade conflict. While the White House did not provide specific details about the tariffs, it confirmed they would be implemented immediately upon announcement. President Donald Trump also suggested that these duties would affect multiple countries.
Gold’s price gains are linked to expectations of interest rate cuts, central bank purchases, and strong demand for gold-backed ETFs. The Chinese gold ETF alone added 233,000 ounces of bullion in the past week.
Investors are now looking ahead to Friday’s nonfarm payrolls report for further clues about the Federal Reserve’s monetary policy direction.
The FOMC will likely lower its key interest rate three times this year, with the first reduction at its June policy meeting.
COPPER
May copper futures are steady on Wednesday after pulling back from record highs reached last week. Traders took profits while awaiting updates on potential U.S. tariffs. The price of copper spiked followed reports that President Donald Trump plans to impose copper import tariffs within weeks, speeding up the original timeline.
This announcement led to a surge in U.S. copper imports, with recent shipments reaching 500,000 tons, which is substantially above the typical 70,000-ton monthly average, as traders scrambled to secure supplies before the tariffs hit. The increased demand in the U.S. has also put pressure on supplies in major markets, especially in Asia. In response, U.S. companies are looking for alternative copper sources, particularly in South America, to cushion the impact of the anticipated tariffs.
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