Central Bank Demand for Gold Strong

GOLD

April gold futures are steady but remain near record high levels driven by a weaker U.S. dollar. Traders are focusing on recent developments regarding U.S. trade tariffs and interest rates. On Thursday, President Donald Trump announced that reciprocal trade tariffs would be applied individually to countries, with no immediate implementation, which caused the U.S. dollar to drop to a two-month low.

Central bank demand for gold remains strong.

SILVER

March silver futures continue to advance, reaching the highest in over three months. This strength outpaced the advance in other precious metals as silver’s role in electrification and manufacturing is becoming increasingly crucial, amplifying its appeal, especially in an atmosphere of a global shift toward safety. The unexpected rebound in January’s ISM Manufacturing PMI bolstered the outlook for U.S. factory demand, ending more than two years of monthly contractions.

Recent data revealed that China installed 357 gigawatts of solar and wind power in 2024, which relies heavily on industrial silver. On the solar front, India’s Oil and Natural Gas Corp committed to investing INR 1 trillion in wind and solar by 2030, while Indonesia pledged to add 17 gigawatts of solar energy through state-run enterprises. Precious metals also received a boost from the U.S. announcement of reciprocal tariffs on major trading partners, scheduled to take effect next quarter.

COPPER

In the overnight trade March copper futures surged to the highest level since May 2024 in light of ongoing concerns that U.S. President Donald Trump might still impose tariffs on copper, following his previous 25% tariffs on steel and aluminum.

Such tariffs would force U.S. buyers to pay a higher premium over LME prices, potentially disrupting the global supply chain. Additionally, the latest data showed traders increasing their net long positions in copper for the sixth week in a row, reaching the highest point since early November.

Strong manufacturing activity in the U.S. and expectations of additional economic stimulus in China, which is the world’s largest copper consumer, also helped drive the positive outlook for the red metal.

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