Written Commentary
SILVER
May silver futures are higher on Wednesday, hitting a near two-week high in light of rising trade tensions and growing economic uncertainties, which sparked increased demand for safe-haven assets. The price jump followed U.S. President Donald Trump’s announcement of an investigation into potential new tariffs on critical mineral imports, heightening fears of an escalating trade war.
Silver also gained from a decline in the U.S. dollar, driven by concerns over an economic slowdown caused by tariff pressures.
GOLD
June gold futures soared to a new record on Wednesday, driven by ongoing uncertainties surrounding U.S. trade policy and a weaker U.S. dollar, which continue to boost demand for safe-haven assets. On Tuesday, President Trump called for an investigation into potential tariffs on all critical mineral imports, which is signal of a tougher trade stance. This move dampened some of the market’s optimism following recent exclusions of certain tech products from reciprocal tariffs and possible exemptions for auto parts.
Adding to gold’s upward momentum are strong inflows into gold-backed ETFs and continued central bank purchases.
COPPER
May copper futures are slightly lower, reversing earlier gains as rising global trade tensions dampened investor confidence in risk assets. This decline came in light of growing concerns over U.S. trade policy, especially after President Donald Trump ordered an investigation into the potential imposition of new tariffs on critical mineral imports.
Market participants are increasingly worried that the same national security arguments used for steel and aluminum tariffs could soon apply to copper. This uncertainty has driven a higher premium on U.S. copper futures compared to similar contracts on the LME, signaling fears of tight domestic smelting capacity and potential disruptions to supply chains.
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