Global investors buy US$12 billion in gold ETFs, copper falls below US$9000 per tonne, and oil prices collapse as Trump’s tariffs hit.
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Gold
Bullish
Investors bought US$12.5 billion in gold ETFs in the first quarter of 2025, the most since 2020.1 Gold ETFs across Europe, North America, and Asia all saw net inflows in the quarter, as investors flooded into the safe haven asset. It was also the first time all three regions collectively purchased gold, reflecting global anxiety around US tariffs.
Bearish
Gold fell below a key support level of US$3,000 per ounce as investors sold down all risk exposures on Trump’s “Liberation Day” tariffs.2 While gold is known as a safe haven asset, it can be sold down alongside portfolios as investors rotate into cash on fears of volatility.
Explore physical gold with GOLD.
Copper
Bullish
The US has yet to implement a copper specific tariff, and traders continue to move the metal stateside. US copper prices remain elevated compared to global copper despite widespread fears of economic slowdown.3
Bearish
Copper fell below US$9000/tonne as investors fretted over slower economic growth as US tariffs trigger global trade wars.4 Copper, often referred to as “Dr. Copper”, is often viewed as a barometer of global economic health due to its wide range of applications. A healthier global economy tends to have higher demand for copper.
Explore copper with WIRE.
Crude Oil
Bullish
Mexico has revised its crude oil production rate for 2025 down by 129,000 barrels per day.5 On top of reductions in raw production figures, there have also been quality issues with Mexican oil.
Bearish
Oil prices collapsed as Trump unleashed tariffs on all US trading partners prompting a rapid re-rating of global demand.6 Trump’s Liberation Day tariffs which enforce both a blanket 10% tax on trade partners and also puts in place “reciprocal” tariffs on specific countries came as a surprise to the market.
The OPEC+ is going ahead with reversing production cuts on crude oil despite crashing prices.7 Eight OPEC+ members including Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman, have decided to increase production by 411,000 barrels per day to their combined supply starting May.
Explore crude oil with BCOM.
Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at 04/04/2025. Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.
Brokerage commissions will reduce returns.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalised investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.
