Metals stage a comeback

This is your Resource Stock Digest editor Gerardo Del Real here with some Monday coffee talking points.

What am I watching this week?

All eyes are squarely on the commodities space… and for good reason! Gold is up nearly 2% today and is back above the US$2,600 per ounce mark. Silver is up nearly 3% and has reclaimed the US$31 level, currently right around US$31.30 per ounce. 

Palladium is up nearly 6%; platinum is up about 3%. Copper is up around 1.5% to US$4.12 per pound. Crude is up nearly 3%. Mind you, all of this is happening juxtaposed with a very high dollar index of 106.36 — nearly touching 107 earlier this morning.  

Needless to say… a very, very impressive rebound in the commodities space. I’ll be watching all week to see if the uptrend continues. And that really has been the story of the last several trading days… watching the dollar index… and watching the various correlations with commodities. 

Last week was a week that had me questioning whether gold would hold the US$2,533/oz level, which, clearly, is a very important technical level for the yellow metal. And here we are this gorgeous Monday morning with gold bouncing off of that key support level in a very significant way, which bodes well for gold equities that are out there drilling and adding value via the discovery process.

I’m also closely monitoring the uranium space as U3O8 prices are surging on a report out of Russia from Friday showing that the Kremlin has imposed “temporary restrictions on the export of enriched uranium to the United States.”

I've long said that the United States needs to accelerate the establishment of a domestic uranium reserve as part of its critical energy metals mix… and this latest salvo out of Russia may very well be the wake-up call Western governments need — as if they needed another stark reminder. 

Uranium equities are currently up some 5% to 15% on the news. We’ll see how that translates over the rest of the week and into December. 

That’s it for this week, folks. I hope everyone has a phenomenal week out there. 

Let’s get it!

Gerardo Del Real

Gerardo Del Real
Editor, Resource Stock Digest