Written Commentary
SILVER
May silver futures are lower as flight to quality longs are being liquidated in light of an apparent easing of U.S.-China trade tensions. Compared to the gold market, silver’s decline has been limited today due to its unique role as both a precious metal and industrial metal, making it more sensitive to improving economic conditions.
Silver prices remain elevated this year and are being supported by prospects of a more accommodative Federal Open Market Committee this year.
COPPER
May copper futures advanced to a three-week high on Wednesday, driven by renewed optimism over easing U.S.-China trade tensions. Investor sentiment improved after President Donald Trump downplayed fears of extreme tariffs on Chinese imports, stating they “won’t be anywhere near as high as 145%,” although he emphasized they “won’t be 0%” either. Treasury Secretary Scott Bessent called the ongoing tariff standoff “unsustainable.”
Prospects of easier credit conditions from the Federal Open Market Committee remain an underlying support long term influence on copper.
GOLD
June gold futures are lower as flight to quality longs are being liquidated in light of renewed optimism over easing U.S.-China trade tensions and diminishing fears regarding the Federal Reserve’s autonomy. Yesterday, Treasury Secretary Scott Bessent expressed confidence that the ongoing trade dispute with China would soon de-escalate.
In addition, President Donald Trump softened his stance on Federal Reserve Chair Jerome Powell, stepping back from earlier threats to remove him. The shift in sentiment dampened demand for gold as a safe-haven asset. Despite lower prices today, gold prices are approximately 30% higher for the year.
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