Watching Metals as Canada Feasts

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

I’d like to start by saying Happy Thanksgiving to all of my friends up north in Canada… make the most of it!

What am I watching this week?

I'm definitely keeping an eye on the strengthening dollar. The dollar index is now above 103 and looks to be headed to the 104 - 105 level.

I’ll be curious to see how the precious metals react to that trend. Gold is currently stuck in sort of that US$2,650 to US$2,675 per ounce range; same goes for silver around US$31 an ounce.  

Turning to base metals, Chinese stimulus over the weekend hasn't yet contributed to higher copper prices. We’ll see if the additional stimulus provided ignites a base metals rally. Copper had been flirting with the US$4.45 per pound level but is now closer to the US$4.30 mark.

We'll also be keeping close tabs on the lithium sector to see if more M&A is in the works. The recent bout of M&A, coupled with an apparent bottoming of lithium spot prices, seems to indicate to me that we should be ready for what we anticipate will be a lucrative upcycle.

Of course, Citi has been calling for a 20% increase in the lithium spot price between now and the end of the year. We’re now in mid-October. End-of-year comes quickly, folks!

That's what I'm watching this week. I hope everyone has a great one out there.

Let's get it,

Gerardo Del Real

Gerardo Del Real
Editor, Resource Stock Digest