SX Gold & Metals Advisor | August 10, 2021
Industrial Metals Are Perking Up
While gold and silver are weighed down by the hawkish tone of the Federal Reserve—along with a rise in longer-dated Treasury yields—traders are increasingly turning their attention to the industrial metals sector.
Beginning with a big up-move in nickel prices in July, other key industrial metals are beginning to show signs of life after months of being dormant. Steel has perked up nicely in recent weeks, thanks to China-related supply pressures and rising global demand.
Meanwhile, copper is showing signs of returning to a position of strength after a two-month slump. And while the red metal will likely remain volatile in the near term, a series of (mostly positive) copper producer earnings reports suggest that the supply/demand balance remains favorable for the red metal from an intermediate-term (3-6 month) perspective.