Written Commentary
GOLD
April gold futures are lower today as investors took profits after a record-setting session. On Monday, the precious metal hit a new all-time high, driven by safe-haven demand due to concerns over U.S. trade policies. President Donald Trump reiterated that tariffs on Canadian and Mexican imports will proceed as planned, causing markets to factor in inflation risks that could affect the Federal Reserve’s monetary policy decisions. Gold also has been supported from strong investor interest, with the SPDR Gold Trust, which is the largest gold-backed ETF, reporting an increase in holdings to 904.38 tonnes on Friday. This is the highest since August 2023.
Central bank demand for gold remains strong.
COPPER
May Copper futures are higher today after two weeks of trending lower, driven by signs of abundant supply in key trading hubs. U.S. President Trump has threatened to impose tariffs on copper imports but decided to back off instead, focusing on raising tariffs on steel and aluminum, preserving a broader supply for manufacturers.
In China, supply remained ample with treatment charges for smelters staying below zero, indicating significant overcapacity in refined copper production. Also, copper inventories in China exceeded 260,000 tonnes, which are three times the level at the beginning of the year, while bonded stocks increased to 33,000 tonnes.
Prospects of a Federal Reserve that is likely to be slow to move to additional accommodation is seen as a headwind to higher prices for industrial metals.
SILVER
May silver futures are lower, continuing their decline from the more than three-month high that was reached on February 14. Recent pressure on futures is linked to ongoing uncertainty surrounding demand, especially concerns over U.S. tariff policies.
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.
