Written Commentary
SILVER
July silver futures are lower on Monday, extending losses from the previous session as easing U.S.-China trade tensions boosted the dollar and weakened demand for safe-haven assets. The decline followed signs of de-escalation, with President Donald Trump indicating a willingness to reduce tariffs on Chinese goods, and Beijing announcing exemptions for certain U.S. imports from its 125% duties.
Washington is set to continue trade discussions this week with other major trading partners, including Japan and South Korea. Investors now turn their attention to upcoming U.S. economic data, which could solidify expectations for earlier interest rate cuts by the Federal Reserve.
Silver prices remain elevated this year and are supported by prospects of a more accommodative Federal Open Market Committee.
COPPER
May copper futures were lower in the overnight trade, extending losses from the previous session. Top consumer China expressed confidence in meeting its full-year growth target of approximately 5.0% but refrained from introducing new stimulus measures. Instead, Chinese monetary authorities pledged to introduce new pro-growth policies in the second quarter, indicating a preference to first assess the timing and severity of trade implications before committing to aggressive stimulative action.
Meanwhile, U.S. President Donald Trump last week signaled openness to easing Chinese tariffs, while Beijing exempted certain U.S. goods from its 125% levies. Uncertainty remained as to whether copper might be targeted in future U.S. trade barriers, which added further volatility to the market.
Prospects of easier credit conditions from the Federal Open Market Committee remain an underlying support long term influence on copper.
GOLD
June gold futures were lower in the overnight trade as easing trade tensions between the U.S. and China weakened the metal’s appeal as a safe-haven asset. The decline followed comments from President Donald Trump last week, signaling a potential softening of his trade stance and hinting that tariff negotiations with China were progressing. On Friday, China announced exemptions for certain U.S. imports from its 125% tariffs, although it denied that any formal trade talks were taking place.
More recently, there has been a recovery in gold despite a affirming U.S. dollar. Traders are turning their attention to several key U.S. economic reports due later this week, including the first estimate of the first quarter gross domestic product and April employment figures, which could influence the Federal Reserve’s next policy decision.
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.
