{"id":21726,"date":"2020-06-07T12:43:33","date_gmt":"2020-06-07T16:43:33","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=21726"},"modified":"2020-11-26T09:47:29","modified_gmt":"2020-11-26T14:47:29","slug":"the-gold-metals-navigator-june-7th-2020","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/the-gold-metals-navigator-june-7th-2020\/","title":{"rendered":"The Gold & Metals Weekly Navigator (June 7th, 2020)"},"content":{"rendered":"

Weekly Performance Recap<\/h2>\n

The global stock markets continued its charge ahead shrugging off COVID-19 and mass protests in the United States, the S&P 500 was up 5% on the week.<\/p>\n

Gold and silver both sold off -3% during the week as investors rotated capital from safe haven assets to equities. Senior gold miners (NYSE: GDX) were off -5.4% vs. junior gold miners -3.7% (NYSE: GDXJ).<\/p>\n

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Source: YCharts<\/figcaption><\/figure>\n

Gold maintains its high inverse correlation with US 10-year real yields. Real yields moved higher on the back of US 10-year treasury yields rising from 0.65% to 0.89%, the 10-year treasury is still a 100bps lower from the start of the year.<\/p>\n

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Copper Enters Bull Market<\/h2>\n

As reported in the FT, the world’s most important industrial metal is now in a bull market – up 20% from it’s March 2020 lows.<\/p>\n

Demand for copper in China (half of global demand) has picked up significantly since the easing of lockdown restrictions.<\/p>\n

Ole Hansen of Saxo Bank views that a push over $2.50\/lb in copper could push further speculation extension to the upside.<\/p>\n

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HG #Copper<\/a> chart highlighting the key resistance area around $2.50\/lb. Funds have only just turned neutral hence the risk of a speculative extension on a break. pic.twitter.com\/xWbdGKrtwC<\/a><\/p>\n

— Ole S Hansen (@Ole_S_Hansen) June 4, 2020<\/a><\/p><\/blockquote>\n