Commodities Weekly Insights By Axis Securities Ltd
The Week That Was
Gold:
COMEX Gold extended its winning streak for the sixth consecutive week, a pattern not seen since 2020. Prices surged to a record high of $2,886 last week, closing with a gain of over 2%. The escalation in U.S.-China trade tensions prompted investors to flock to safe-haven assets. U.S. President Donald Trump initiated a new phase of the trade war by imposing additional tariffs on China, though he granted Mexico and Canada a one-month reprieve. Furthermore, the latest U.S. non-farm payroll data supported gold prices. The near-term outlook remains bullish.
Silver:
Silver continued its upward momentum, marking a three-week winning streak with gains of over 1.5% last week. Heightened safe-haven demand and a recovery in industrial metals supported sentiment for the white metal. A pullback in the U.S. dollar added further upside as traders positioned for potential rate cuts by the Federal Reserve this year, despite strong labor market data from January. Additionally, the unexpected rebound in the U.S. manufacturing sector, highlighted by the ISM PMI, boosted silver’s appeal, particularly given its key role in electrification technologies.
Crude Oil:
NYMEX Crude Oil remained under selling pressure for the third consecutive week, falling nearly 4% in the last session. Bearish inventory data, uncertainty surrounding the postponement of U.S. tariffs on Canadian and Mexican oil, and China’s retaliatory tariffs on U.S. energy exports weighed heavily on sentiment. Furthermore, OPEC+ reaffirmed its decision to gradually increase production starting in April, adding additional pressure on prices.
Copper (Base Metals):
COMEX Copper posted its strongest weekly gain of over 7% since May 2024, fueled by easing trade war concerns and tightening global supply. The delay in U.S. tariffs on Canadian and Mexican metals alleviated fears of a supply disruption. In contrast, concerns about a supply crunch in Chile, the world’s largest copper producer, further supported the rally. Chile’s optimistic outlook for rising copper demand, driven by the global energy transition and expansion of electrical networks, strengthened the metal’s bullish outlook.
Summary View For The Week
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