Written Commentary
COPPER
March copper futures are lower extending a recent decline as U.S.-led efforts to end the war between Russia and Ukraine raised the possibility that Russian copper could return to the Western market. The West previously banned imports of Russian metals as part of broader sanctions to Moscow’s invasion of Ukraine. Concerns about potential US tariffs on copper imports also receded after President Donald Trump suggested that tariffs on copper would take longer to implement than the recently announced tariffs on aluminum and steel.
In China, authorities have ordered restrictions on copper smelting due to excess capacity in the industry. This overproduction has led to rising copper imports and falling inventories, although smelting firms are struggling to turn a profit.
GOLD
April gold futures are higher and are closing in on record highs, as ongoing uncertainty over U.S. tariffs fuels demand for safe-haven assets. Since taking office, U.S. President Donald Trump has introduced a 10% tariff on Chinese imports, announced but later postponed 25% tariffs on goods from Mexico and non-energy imports from Canada, planned 25% tariffs on imported steel and aluminum, and is preparing reciprocal tariffs for countries that impose taxes on U.S. imports.
Gold prices are higher despite hawkish comments from Federal Reserve officials. Federal Reserve Governor Christopher Waller suggested a pause in rate cuts based on recent economic data, unless inflation behaves similarly to 2024.
Central bank demand for gold remains strong.
SILVER
March silver futures are higher today after last week reaching the highest level in over three months, bolstered by strong industrial demand, especially from the electrification and manufacturing sectors. Recent data showed that China added 357 gigawatts of solar and wind power in 2024, further driving industrial silver consumption.
Recent strength can be attributed to global trade uncertainties, which fueled ongoing safe-haven demand for precious metals.
At the same time, investors remained focused on U.S.-led efforts to address the war in Ukraine, which could reduce the demand for safe-haven assets like silver.
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.
