Written Commentary
PRECIOUS METALS
Gold/Silver:
Another day and another round of all-time highs in gold and silver extends the historic bull market into another trading session. With the dollar weakening, interest rates ticking lower, and the US president calling for regime change in Venezuela the bull camp has a plethora of bullish themes. According to Reuters gold has made 50 record high closes this year! While money flowing into silver ETF holdings yesterday was modest at only 411,722 ounces, gold ETF holdings jumped by a very significant 388,309 ounces for a single day expansion of 0.4%. It should be noted that total gold ETF holdings are approaching 100 million ounces while silver ETF holdings are approaching 854 million ounces. Even though investment demand has exploded we do not see a near-term interruption of funds flowing toward precious metal instruments. In silver, year-to-date silver ETF purchases are 137 million ounces compared to only 61 million ounces last year and 331 million ounces back in 2020. In other words, silver also looks to have residual investment demand capacity in reserve.
BASE METALS
Copper:
The bias in copper remains up even though this week has presented a slight loss of momentum. The market is partially undermined as result of mixed to slightly disappointing global scheduled data overnight but is also being supported by renewed weakness in the US dollar and generally positive sentiment flowing from US equities. Another underpin for copper prices is ongoing evidence of tight global copper ore supplies which in turn have resulted in significant available refining capacity and historically low processing fees for 2026.
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