Metals shine on reflation narrative – Gold, Copper hit ATH [Video]

The week kicked off with quite a solid appetite, especially for commodities. Gold and copper advanced to fresh record while silver soared past $32 for the first time in more than a decade. The gold-silver ratio, also called the mint ratio, tanked to the lowest levels since January 2022 as gains in silver outpaced gains in gold. Silver has room to gain against the yellow metal if the reflation narrative remains a major driver.

In energy, crude oil finds it hard to clear a major resistance near $80pb, while nat gas prices are finally picking up the momentum that many were waiting for, for months.

Of course, the commodity rally is also a boon for mining stocks, and the FTSE 100 has plenty of them in its pockets. The British blue-chip index is well positioned to benefit from the unfolding reflation narrative, especially if we see sterling retrace gains in the coming weeks – which I think is a growing possibility if tomorrow’s British inflation print satisfy the Bank of England (BoE) doves.

Elsewhere, Nasdaq 100 advanced to a fresh ATH, as Nvidia rallied 2.50% yesterday after Barclays lifted its price target from $850 to $1100 per share saying that it sees more revenue upside to current estimates. Nvidia will reveal its latest quarterly results tomorrow after the bell and can’t afford to drop the ball.