Key Highlights:

• Copper Futures: Surged 8.5% but remain nearly 20% below recent highs due to potential future tariffs.

• WTI Crude Oil: Rebounded over 4% as trade tensions eased and energy demand improved.

• Gold and Silver: Gained due to safe-haven demand amid escalating U.S.-China trade tensions.

The recent decision by President Donald Trump to pause most of his “reciprocal” tariffs for 90 days has sent mixed signals across various commodity markets. While some commodities saw significant gains, others remain under pressure due to ongoing trade tensions, particularly with China.

Copper Futures: Hope Amid Uncertainty

 Copper futures in the U.S. surged 8.5% to $4.4 per pound on Wednesday, following Trump’s tariff pause. Although copper was initially excluded from the reciprocal tariffs, the move raised hopes that countries might negotiate deals to remove sharper trade barriers. However, copper futures are nearly 20% down from their record high of $5.3, touched on March 26th, as the U.S. signaled potential tariffs on copper in upcoming weeks. This threat has widened the premium of U.S. copper futures compared to those on the London Metal Exchange (LME), reflecting concerns about limited U.S. copper smelting capacity under trade barriers.

WTI Crude Oil: Rebound Amid Eased Tensions

 WTI crude oil futures rebounded sharply, climbing more than 4% to trade above $62 per barrel. This recovery was driven by eased recession fears and improved energy demand outlooks following Trump’s decision to suspend tariffs for most countries. While China remains excluded from the suspension, with tariffs on its exports raised to 125%, the broader de-escalation in trade tensions helped restore confidence across commodity markets. Supporting this rally was the latest EIA report showing a larger-than-expected draw in gasoline and distillate inventories, which offset a modest rise in crude stockpiles. Additionally, hints from OPEC+ officials about potential delays to previously announced production increases tempered oversupply concerns and reinforced the price rebound.

Gold and Silver: Safe-Haven Demand

 Gold jumped over 3% to above $3,065 per ounce, driven by escalating U.S.-China trade tensions that fueled safe-haven demand. Trump’s announcement of a 90-day tariff pause and a reduced 10% reciprocal tariff for all countries except China was followed by Beijing’s increase in tariffs on U.S. goods to 84%. The European Union also approved retaliatory tariffs on €21 billion of U.S. imports. Gold-backed ETFs saw significant inflows in the first quarter, further boosting gold’s momentum.

Silver prices stayed above $30.50 per ounce, bolstered by rising safe-haven demand amid escalating trade tensions. The metal held onto earlier gains after Trump’s tariff announcements and China’s retaliatory measures. The European Commission’s approval of retaliatory tariffs and concerns about stagflation also supported silver’s price stability.

Conclusion

 The reaction of commodities to Trump’s tariff pause reflects the complex interplay between trade policies and market dynamics. While some commodities like copper and oil saw gains due to eased tensions, others like gold and silver benefited from safe-haven demand amid ongoing U.S.-China trade disputes. The future trajectory of these commodities will depend on how trade negotiations unfold and whether tensions escalate further.