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Base Metals
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General Base Metals
Junior Weekly Recap: Brexit, Zinc, Silver
As the June 23 Brexit vote nears, we’re starting to see volatility pick up. The dollar gained approximately 0.4% for the week, bouncing back from a four-week low, but despite dollar strength gold saw a weekly rise of approximately 2.7%, holding the $1,270 level. Oil gained approximately 3% for the week, as it held near the $50 level.
The real strength, however, came in the silver market as silver traded above $17.30 on Friday and posted a weekly gain of nearly 6%, the largest gain in nearly two months.
Zinc, much like uranium, has disappointed many the past few years as expectations for a sustained price rise have failed to materialize. Zinc, however, appears to be turning that corner and prices are near a 52-week high at $0.94/lb.
Meanwhile copper saw a 3.5% decline for the week. The drop in the price of copper correlates well with stockpiles increasing the most since 2005 and with concerns that the global economy remains weak.
Adding fuel to the fire is the realization that central bankers are slowly but surely losing the ability to influence growth. A job, by the way, that politicians worldwide are suppose to be involved in.