Monthly Metal Review

Gold and Silver (May 2019)

Gold’s performance has been surprisingly weak considering the deterioration in the global economic, political and trade situa-tions that unfolded during May, especially since US/China trade negotiations turned sour. From a high of $1,346.75 per oz in February, prices have traded between $1,266.50 per oz and $1,303.65 per oz in May, with only one close seen above $1,300 per oz. With US treasury yields back at levels not seen since 2017, and German and Japanese government bond yields negative, the opportunity cost of holding gold is low – this should be sup-portive for gold prices, but prices have been trending lower. The one sector that has shown growing interest in gold is central banks, in the first quarter global central bank gold reserves grew by 145.5 tonnes, which was a six-year high for a first quarter, with the rolling four-quarter total setting a record 715.7 tonnes. Of the central banks, Russia bought 55.3 tonnes in the first quarter and China bought 33 tonnes. The ranks of central banks buying gold has been growing of late, with the two latest being the Philip-pines and Serbia, who have joined other recent buyers such as: Kazakhstan, India, Poland, Hungary, Turkey, Qatar, Iran, Ecua-dor and Columbia. This suggests a growing interest to diverge for away from the US dollar. Silver prices are trending lower in line with gold’s price performance, but with the gold/silver ratio recently falling to a multi-year high of 1:89.32, the highest since 2008 when it peaked at 1:89.56, silver’s relative value compared with gold is at an ex-treme low. In 2011, when gold prices peaked at $1,921 per oz, the ratio was around 1:31. One reason for the relative weakness in silver prices may be the escalation in the trade war, with US tariffs being applied to Chinese manufactured photovoltaic solar panels. In addition, the funds trading silver on Comex turned net short in early May, while investors’ gold position is still net long. The net short position is now at 14,622 contracts, this after being as high as net long 58,313 contracts at the end of February.

Daily Prices

June 2019

Copper
Date(Fix.) ($/MT)
Average 5814.06
13-06-2019 5797.5
12-06-2019 5828.5
11-06-2019 5905
10-06-2019 5788
07-06-2019 5770
06-06-2019 5805
05-06-2019 5832.5
04-06-2019 5804
03-06-2019 5796
Silver
Date(Fix.) ($/OZ)
Average 14.80
13-06-2019 14.795
12-06-2019 14.79
11-06-2019 14.695
10-06-2019 14.745
07-06-2019 14.91
06-06-2019 14.955
05-06-2019 14.84
04-06-2019 14.72
03-06-2019 14.705
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1329.99
13-06-2019 1335.8
12-06-2019 1336.65
11-06-2019 1322.65
10-06-2019 1328.6
07-06-2019 1334.3
06-06-2019 1336.65
05-06-2019 1337.75
04-06-2019 1323.6
03-06-2019 1313.95
Date(Fix.) ($/OZ)
Average 1330.20
13-06-2019 1335.85
12-06-2019 1334.5
11-06-2019 1323.475
10-06-2019 1328.6
07-06-2019 1337.475
06-06-2019 1336.075
05-06-2019 1336.4
04-06-2019 1323.925
03-06-2019 1315.525
Date(Fix.) ($/OZ)
Average 1330.41
13-06-2019 1335.9
12-06-2019 1332.35
11-06-2019 1324.3
10-06-2019 1328.6
07-06-2019 1340.65
06-06-2019 1335.5
05-06-2019 1335.05
04-06-2019 1324.25
03-06-2019 1317.1
Lead
Date(Fix.) ($/MT)
Average 1882.94
13-06-2019 1903
12-06-2019 1918
11-06-2019 1949
10-06-2019 1888
07-06-2019 1837
06-06-2019 1945
05-06-2019 1881.5
04-06-2019 1834
03-06-2019 1791
Zinc
Date(Fix.) ($/MT)
Average 2627.78
13-06-2019 2604
12-06-2019 2640.5
11-06-2019 2670
10-06-2019 2620.5
07-06-2019 2621
06-06-2019 2637
05-06-2019 2605.5
04-06-2019 2636
03-06-2019 2615.5
Tin
Date(Fix.) ($/MT)
Average 19285.00
13-06-2019 19500
12-06-2019 19325
11-06-2019 19360
10-06-2019 19280
07-06-2019 19630
06-06-2019 19110
05-06-2019 19110
04-06-2019 19250
03-06-2019 19000
Nickel
Date(Fix.) ($/MT)
Average 11756.11
13-06-2019 11920
12-06-2019 11745
11-06-2019 11825
10-06-2019 11600
07-06-2019 11580
06-06-2019 11710
05-06-2019 11765
04-06-2019 11800
03-06-2019 11860
Cobalt
Date(Fix.) ($/MT)
Average 30000.00
13-06-2019 28000
12-06-2019 28000
11-06-2019 28000
10-06-2019 28000
07-06-2019 28000
06-06-2019 32500
05-06-2019 32500
04-06-2019 32500
03-06-2019 32500