Alan Bush
March 18, 2025
SILVER
May silver futures continued to advance and today traded at the highest level since October 30, 2024 as traders moved assets into safe haven vehicles in light of escalating tariff tensions and growing expectations of Federal Reserve interest rate cuts following last week’s weaker-than-expected U.S. inflation data.
The long-term outlook for silver is bullish in light of the supply-demand situation. Over the past four years, silver supply has consistently fallen short of meeting demand. Industrial applications account for the majority of demand, making up approximately 60% of total silver consumption.
GOLD
April gold futures advanced to new record highs with much of the strength linked to flight to quality buying in light of renewed hostilities in the Middle East. In addition, rising trade tariff concerns continue to support gold.
COPPER
May copper futures advanced above the $5.00 per pound level, hitting a ten-month high, as China’s new stimulus measures raised expectations for increased demand in the world’s largest copper consumer. The policy package, revealed over the weekend, focuses on boosting household income, encouraging consumer spending, and supporting population growth, which fueled optimism for stronger industrial demand.
In addition, prices were bolstered by speculation that President Donald Trump may impose tariffs on copper imports, potentially putting pressure on the limited capacity of domestic smelters. The U.S. currently imports nearly half of its copper, relying on just two major smelters for domestic production.
While reports indicate that these tariffs may be implemented later this year, the recent escalation of base metal tariffs on Canada by the White House has sparked concerns that copper tariffs could come sooner than anticipated. (Source: https://www.admis.com)