New York futures for gold, copper tumble on WSJ tariff report
The gap in prices for copper and gold between New York and London narrowed as traders reacted to a report that the Trump administration would not impose tariffs immediately after inauguration.
Earlier Monday the Wall Street Journal reported that US President Donald Trump will stop short of imposing new tariffs on his first day in office. The prospect of metals being caught up in the sweeping tariff measures caused premiums for gold and silver futures deliverable in New York to swell in recent weeks, as traders bought out of their short positions.
Premiums for gold traded on the US-based Comex over the London spot market halved following the news report, to around $20 an ounce.
The price gap for copper on Comex over London Metals Exchange futures fell from nearly $500 a metric ton to around $300 a ton. China, the largest copper importer, will not be subject to specific tariffs on Trump’s first day in office, Bloomberg reported, citing people familiar with the matter.
Copper futures on the LME rose as much as 1.2% following the Wall Street Journal report, while prices on Comex traded 1.3% lower. Spot gold edged higher, while the first available gold futures contract on the New York-based exchange fell 0.9%.
The silver premium over spot — or exchange-for-physical — remained elevated, even after the report. Silver is used in greater quantities for industrial applications compared to gold. Some industry experts have said the talk on trade restrictions may be expediting a supply squeeze in London vaults, as traders rush to ship their metal across the Atlantic into Comex warehouses to avoid it becoming subject to tariffs.
(By Jack Ryan)
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