- Silver has erased its loss for the year, and copper has recouped most of the declines it suffered during the peak of the coronavirus.
- July silver (XAGUSD:CUR) settled at $18.035/oz. today, lifting the price 0.6% higher YTD after sliding as much as a third for 2020 with an 11-year low of $11.772/oz. on Mar. 18.
- September copper (HG1:COM) is now 4.2% lower YTD after settling at 2.679/lb. today, but the metal had marked a 33% YTD drop when it fell to their lowest level since October 2016 at $2.101/lb. on March 23.
- The drop in global mining production from the virus-led shutdowns helped boost the prices of both commodities, says Rohan Reddy, research analyst at Global X, and the sharp climb "indicates the market views the deterioration in economic data being short-lived."
- A second wave of virus infection probably would put "even more fuel under silver's price rally" because of the prospects of a long-lived low interest rate environment, and inflationary measures of policy makers to stimulate economies, says InvestingHaven.com's Taki Tsaklanos, who expects silver to test $21/oz. before year-end.
- ETFs: SLV, SIL, USLV, PHYS, PSLV, CPER, JJCTF, JJC