Phil Carr
Add to Bookmarks

Silver and other industrial metals, such as Copper and Palladium have made an impressive start to Q2 2021, but a healthy correction is now due, which could lead to the next leg higher.

This week, Palladium prices led the rally, surging at an all-time record high.

Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Palladium’s explosive rally also pulled up Copper, which is now trading at a decade high. Copper prices have more than doubled since March last year. Meanwhile, Silver prices have traded in and around the $26 an ounce level.

There are plenty of fundamental factors why metals are on the move, but the key driver is a vaccine-led recovery fuelled by massive amounts of global stimulus into Green Energy and Infrastructure projects. This is against a backdrop of tightening supply across many high-in-demand commodities, which indicates that we now at the dawn of a new supercycle.

Earlier this month, President Biden revealed his ‘Build Back Better’ Plan to transform the U.S. economy.

President Biden’s ambitious $2.3 trillion proposals will involve pumping hundreds of billions of dollars into improving the nation’s aging roads, bridges, schools, railways, waterways, airports and cellular network. This ultimately means that the U.S is going to need more commodities – and lots of them.

However, supply is limited – which is yet another indication that we could be on verge of a new supercycle in commodities as demand outstrips supply over the next few years. Therefore, any near-term pullbacks should be considered as a buying opportunities.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker