Written Commentary
GOLD
June gold futures are higher on Tuesday, driven by ongoing uncertainty surrounding President Donald Trump’s tariff policies. After temporarily exempting tech products from reciprocal tariffs, President Trump is now considering similar exemptions for the auto industry despite maintaining a 25% tariff stance. Meanwhile, the Trump administration has launched national security investigations into pharmaceutical and semiconductor imports on Monday, potentially setting the stage for additional tariffs.
Adding to gold’s appeal, Federal Reserve Governor Christopher Waller signaled that interest rate cuts might be necessary if President Trump’s tariffs persist. On the other hand, Atlanta Federal Reserve President Raphael Bostic recommended a cautious approach, suggesting the central bank wait for more clarity. Markets are currently pricing in approximately 85 basis points of interest rate cuts by year-end, though most traders expect the Fed to hold steady at its next meeting.
SILVER
May silver futures are slightly higher on Tuesday as investors weighed mixed signals on U.S. trade policy and its broader economic impact. President Donald Trump moved to exempt key tech products from new reciprocal tariffs and is reportedly considering a delay on proposed 25% tariffs on auto imports. Uncertainty lingered following the Commerce Department’s national security investigations into semiconductor and pharmaceutical imports.
Easing trade tensions dampened demand for safe-haven assets. There was some pressure on silver after U.S. President Donald Trump announced exemptions for key technology products from his new “reciprocal” tariffs, a move that boosted global market sentiment.
COPPER
May copper futures are slightly lower but remain above $4.60 per pound on Tuesday, hovering near a one-week high as global risk appetite improved despite lingering uncertainty over U.S. trade policy. Market sentiment was lifted by President Trump’s recent move to exempt certain key technology products from reciprocal tariffs, along with reports hinting at a possible pause on his proposed 25% auto import duties.
Traders are also closely watching this week’s trade negotiations between the U.S. and major partners. Meanwhile, expectations that the U.S. could still impose metal-specific tariffs under national security grounds added further support to copper prices. This outlook has widened the premium on U.S. copper futures over comparable London Metal Exchange contracts, amid concerns that new trade barriers could strain domestic smelting capacity.
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