Silver Higher Despite Advance in USD

SILVER

March silver futures are higher despite today’s strong advance in the U.S. dollar and increasing U.S. Treasury yields. Prices are trading near the highest level since December 18. Recent strength in silver is taking place in spite of strong U.S. economic data, which reduced the likelihood of further interest rate cuts by the Federal Reserve.

Some of the recent strength in silver is due to a move to safe-haven assets in light of the uncertainty surrounding U.S. President-elect Donald Trump’s inauguration on January 20 and confusion surrounding his tariff plans. Additionally, expectations that China, which is the world’s largest consumer of metals, would deliver on its promises for increased monetary and fiscal stimulus to boost economic growth also helped sustain silver prices.

GOLD

February gold futures are higher despite a strong U.S. dollar. In addition, the yellow metal remains firm despite the bearish influence of rising U.S. Treasury yields. This followed a surge in U.S. job openings, highlighting the continued strength of the labor market.

Gold is receiving support due to the uncertainty surrounding tariff policies ahead of Trump’s inauguration, and official data indicated that the People’s Bank of China added gold to its reserves for the second consecutive month.

In the longer term view, the precious metal remains supported by persistent geopolitical tensions and expectations of continued central bank buying.

COPPER

In the overnight trade, March copper futures advanced to the highest level since December 13 as investors are becoming more optimistic that Beijing will implement its recent pledges of increased monetary and fiscal stimulus to boost economic growth.

Strong copper demand, fueled by the growing adoption of electric vehicles and renewable energy technologies also supported prices. Copper prices remained firm despite a rise in the U.S. dollar and rising U.S. Treasury yields, due by  mostly stronger than expected U.S. economic data that reduced expectations for additional Federal Reserve interest rate cuts. However, ongoing uncertainty about former President Trump’s tariff policies continued to dampen market sentiment.

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