Written Commentary
COPPER
March copper futures continue to advance and are now trading at the highest level since December 16. The upward movement was fueled by a decline in the U.S. dollar, following reports that the incoming Trump administration may take a less aggressive stance on tariffs. However, President-elect Donald Trump denied the claims, prompting some caution among market participants.
Copper prices found support from a more positive economic outlook in China, which is the world’s largest copper consumer. Beijing has recently committed to adopting “more proactive” macroeconomic policies and cutting interest rates this year to stimulate growth.
GOLD
February gold futures are higher despite the upward pressure from rising U.S. Treasury yields.
Comments from Federal Reserve Governor Lisa Cook on Monday highlighted the central bank’s cautious stance on interest rate cuts, pointing to the resilience of the labor market and ongoing inflation. This could limit the upside on gold, as higher interest rates reduce the appeal of the non-yielding yellow metal.
In the longer term view, the precious metal remains supported by persistent geopolitical tensions and expectations of continued central bank buying.
SILVER
March silver futures are higher this week and are trading at the highest level since December 18, as the U.S. dollar weakened after reports suggested the incoming Trump administration might take a more targeted approach to tariffs. However, President-elect Donald Trump quickly denied these reports.
Looking ahead, investors will be closely watching U.S. labor market data this week to gauge the potential direction of Federal Reserve policy, which could impact the U.S. dollar. Additionally, silver found support from a positive economic outlook in China, which is the world’s largest silver consumer. Beijing recently pledged to introduce “more proactive” macroeconomic policies and lower interest rates this year to boost economic growth.
Interested in more futures markets? Explore our Market Dashboards here.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
