Full Metal Panic! Gold, silver and copper fly together

Full Metal Panic! Gold, silver and copper are flying together. Wall Street Insights Many Western funds have missed the rise in gold prices. But it is obvious. They obviously do not want to miss the copper market.
Under the influence of the epic short squeeze on copper in New York, the global metal market ushered in a wave of all-metal frenzy.
This week, copper prices on the New York and Shanghai exchanges hit new highs.
On Friday, copper prices on the London Metal Exchange also recorded a 2.8% increase, approaching the all-time high in March 2022.
At the same time, the price of silver climbed to an 11-year high. The price of gold also rose back to its historical high in April.
Silver: The next commodity to explode? Phil Streible, chief market strategist at futures company Blue Line Futures, analyzed that the sharp rise in copper prices has pushed up silver prices because silver is also regarded as an industrial commodity and is widely used in solar cells and other fields.
He said: The three main factors affecting commodity prices are supply, demand and price trends. Silver currently has all three.
Since the beginning of this year, driven by the tight supply of the physical market and strong investor interest, the prices of industrial metals and precious metals have risen sharply.
Wall Street News mentioned that although the media headlines mainly focus on gold. After all, gold has set historical records many times this year. But it is actually silver that is rising stronger and faster.
After experiencing a relatively larger rise, silver remains cheap compared to gold.
It currently takes approximately 80 ounces of silver to purchase 1 ounce of gold. The average gold-to-silver ratio over the 20-year period is 68.
However, in the face of silver\’s rising trend, many analysts also hold relatively cautious views: UBS pointed out in a research report that because many investors were caught off guard by the speed and magnitude of the rise in gold prices, at this time, silver provides investors with Provides an opportunity to catch up.
The supply and demand of silver itself is indeed tight, but it is not enough to support the sharp rise in silver prices. However, with the price of gold soaring, silver, as a cheaper and more volatile alternative to gold, is naturally favored by investors.
HSBC expects global demand for silver coins and bars to decline. Many retail investors have purchased silver coins and bars in large quantities over the past few years. There is currently little interest in further increasing holdings.
High silver prices drive more silver coins and bars into the secondary market. This reduces the demand for newly minted silver coins and bars.
Although global inflation still exists, it is gradually easing.
The outlook for demand for silver in the jewelry industry is not optimistic.
Silver supply is less than demand. It helps prevent silver prices from falling sharply, but it is not enough to support a long-term bull market.
Volatility in the global precious metals market has intensified. Supply disruptions have caught the market off guard. A large number of traders holding short positions have closed their positions. The volatility in the global precious metals market has intensified.
Data showed that LME nickel prices surged 7.9% on Friday after violent protests broke out in New Caledonia, the world\’s third largest nickel producer.
Al Monroe, metal strategist at Marex Base in London, said: Although the market has discussed the current weak demand, we are facing a supply problem. As the copper and nickel markets have shown.
We\’re talking about the futures market. Demand looks set to be strong going forward.
In recent months, the long-short duel in the copper market has mainly centered on expectations of supply gaps and demand growth.
Market forces took a sharp turn this week. A short squeeze in the New York market caused traders with short positions to suffer significant losses.
In the global copper market, traders are scrambling to find delivery of the metal for the July contract, but are also facing challenges from supply constraints and shipping bottlenecks.
On Friday afternoon, the copper price on the London Metal Exchange reached $10,707 per ton, close to the historical high of $10,845 in 2022. The price of Comex copper for July delivery rose 3.2%.
Gold prices rose 1.3%. Silver prices rose 3.7%.
Gold, silver and copper-related stocks also rose.
Matthew Heap, portfolio manager of Orion Resource, the world\’s largest metal fund management company, said: Many Western funds have missed the rise in gold prices. But it is obvious. They obviously do not want to miss the copper market.
This reflects that the copper market has a clear story. Even in an elevator, the reasons for its price rise can be explained simply.
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