Our Daily Notes

05/20/2024 11:00 The rally in metal prices continues… “Leading indicators” were announced on Friday in the US. Although the six-month and annual rates no longer indicate a recession, they indicate that there may be growth problems in the upcoming period. News flows from both Israel and Iran over the weekend increase geopolitical risks. There is no negative impact on stock indices for now, but gold prices saw a new record in the Asian session. Both precious metals and industrial metals had a very good week and started the new week positively. The Bloomberg Precious Metals Index made a 3.7% premium last week and the Bloomberg Industrial Metals Index (BCOMIN) made a 6.4% premium. The April industrial production data announced by China last week Link and news flows on the housing sector Link supported the rally in industrial metals. However, BCOMIN’s RSI level rose to 79. Profit taking risks are increasing from a “technical” perspective. Silver ended the week with a 6.5% “single-day” premium on Friday. With the passage of $29.8, purchases increased on Friday and we saw above $32 this morning. The Gold/Silver ratio started the new week by seeing 75. The lowest level since December 2022. Copper is at a record level on Comex. It is trading at $515.7… The LME is very close to a record in the 3-month contract. It is trading at $10,668. The Comex/LME spread widened further last week with news of European sanctions against Russia. The RSI rose to 78 in Comex copper contracts… Fed speeches are prominent in international markets today. This week, the Fed minutes and Nvidia balance sheet will be closely followed. Although record after record is seen in stock indices, when we exclude the US from MSCI ACWI, we are below the 2021 record levels.