Written Commentary
COPPER
March copper futures declined to their lowest point in more than three weeks. This decline was sparked by concerns over global trade disruptions following the announcement of new U.S. tariffs, which triggered a broad selloff in risk assets.
In China, which is the world’s biggest copper consumer, a private survey showed manufacturing activity grew less than expected in January, with foreign orders shrinking in light of ongoing global trade uncertainties. Although Chinese markets are closed for the Lunar New Year, trading will resume on Tuesday.
GOLD
March gold futures advanced to record highs despite sharp gains in the U.S. dollar. Most of today’s strength in precious metals can be linked to flight to quality buying after the U.S. introduced 10% tariffs on China and 25% tariffs on Canada and Mexico, raising concerns about slower global economic growth.
The precious metal remains supported by expectations of continued central bank buying.
SILVER
March silver futures were lower in the overnight trade in response to the sharply higher U.S. dollar. However, there has been a recovery as the flight to quality influence has taken over.
The Silver Institute recently forecasted a fifth consecutive year of a significant market deficit for silver in 2025. This projection is driven by strong industrial demand and retail investment, which are expected to outpace weaker consumption in jewelry and silverware. While global silver supply is anticipated to increase this year with higher output from China, Canada, and Chile, the ongoing deficit is still expected to persist.
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