GOLD
Gold prices surged to a record high as investors moved funds into safe-haven assets after U.S. President Donald Trump reiterated his tariff threats. Gold’s rally was further fueled by accommodative monetary policies from major central banks. The European Central Bank cut interest rates as anticipated, leaving the door open for further reductions, while the Bank of Canada ended its quantitative tightening and lowered its key lending rate. Earlier in the week, the Swedish Riksbank also delivered rate cuts. Both the People’s Bank of China and the Reserve Bank of India signaled looser policies and increased liquidity. In contrast, U.S. Federal Reserve kept its key interest rate unchanged at its policy meeting this week with no indication of immediate changes.
Personal income in December increased 0.4% as expected, and personal consumption expenditures in December were up 0.7% when a gain of 0.5% was anticipated. The employment cost index in the fourth quarter of 2024 increased 0.9% as forecast. The 8:45 central time January Chicago PMI is estimated to be 40.0.
SILVER
March silver futures advanced to the highest level since December 12 as U.S. President Donald Trump reiterated his threat to impose a 25% tariff on Mexico and Canada starting Saturday, which boosted demand for safe-haven assets like precious metals.
The Silver Institute forecasted a fifth consecutive year of a significant market deficit for the metal in 2025. This projection is driven by strong industrial demand and retail investment, which are expected to outpace weaker consumption in jewelry and silverware. While global silver supply is anticipated to increase this year with higher output from China, Canada, and Chile, the ongoing deficit is still expected to persist.
COPPER
March copper futures are on track to end the week unchanged after a week of increased volatility, driven by concerns over U.S. President Donald Trump’s tariff proposals. President Trump recently reaffirmed plans to impose 25% tariffs on Mexico and Canada starting Saturday, while a 10% tariff on China remains under consideration. Additionally, the President has introduced plans to levy tariffs on imported chips, pharmaceuticals, steel, aluminum and copper to boost domestic production.
China, which is the world’s largest copper consumer, revealed an unexpected contraction in manufacturing activity for January. With Chinese markets closed for the week-long Lunar New Year holiday, trading volumes are expected to be lighter than usual.
Copper output in Chile, which is the world’s largest producer of the red metal, increased 14.3% year-on-year in December to 566,547 metric tons, the country’s INE statistics agency said on Friday.
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