Written Commentary
COPPER
May copper futures are higher, recovering from a recent three-month low. The recovery followed President Donald Trump’s decision to pause his reciprocal tariff package for 90 days. While copper was initially excluded from the tariffs, the policy imposed a 10% levy on non-retaliating countries and helped ease recession concerns in the world’s largest economy, boosting broader expectations for manufacturing demand.
Despite the recent uptick, copper futures are still down more than 20% from their all-time high of $5.30, reached on March 26. Market sentiment remains cautious as President Trump has indicated plans to introduce copper-specific tariffs in the coming weeks.
Adding to the pressure, the ongoing trade war with China has intensified, with both nations imposing higher tariffs. This escalation is disrupting the flow of copper scrap exports from the U.S. to China, further clouding the outlook for the metal.
GOLD
June gold futures were sharply higher in the overnight trade with follow-through strength after the March consumer price index report was released. The March consumer price index declined 0.1% when a 0.1% increase was expected. The consumer price index excluding food and energy on a month-to-month basis advanced 0.1% when a gain of 0.3% was estimated. In addition, there was some support due to a lower U.S. dollar.
Meanwhile, markets continued to digest the latest FOMC minutes, which show near-unanimous concerns over higher inflation and slower growth. Elsewhere the World Gold Council reported gold-backed ETFs saw inflows of 226.5 metric tons, worth $21.1 billion, in the first quarter.
SILVER
June gold futures were sharply higher in the overnight trade with follow-through strength after the March consumer price index report was released. The March consumer price index declined 0.1% when a 0.1% increase was expected. The consumer price index excluding food and energy on a month-to-month basis advanced 0.1% when a gain of 0.3% was estimated. In addition, there was some support due to a lower U.S. dollar.
Meanwhile, markets continued to digest the latest FOMC minutes, which show near-unanimous concerns over higher inflation and slower growth. Elsewhere the World Gold Council reported gold-backed ETFs saw inflows of 226.5 metric tons, worth $21.1 billion, in the first quarter.
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