What's driving the trends in gold and copper?
Greg Barnes, Head of Mining Equity Research, TD Cowen, speaks with MoneyTalk Live about current market trends in gold and copper demand. As the price of gold reaches new highs this year, at what price could it top out and might a stronger U.S. dollar clip that peak? Greg also discusses the low price of copper, potentially stemming from the commodity's value tied to a slowing industrial manufacturing market. He also discusses the effect of the energy transition driving renewed interest in nuclear power, and how investors might reduce risk while taking advantage of the move towards a low-carbon economy. Finally, Greg offers his outlook on the mining sector for the year ahead.
Key Takeaways
- Gold's new highs could be attributed to inflation, a weak U.S. dollar, the debt ceiling and high central bank buying. Signs indicate there could still be room for it to grow, but a stronger U.S. dollar might stop that.
- Slower industrial manufacturing needs reduced demand for surplus copper. A recession could further amplify that issue. However, requirements for copper in emerging markets, including electric vehicles, may result in a surge of demand.
- Existing nuclear power plants are being refurbished and new plants being built in response to the move away from carbon-based energy production. It may be lower risk to invest in uranium supply chains than in plant manufacturing.
- While countries like Canada and Australia may offer stable environments to build mines, the biggest deposits can often be found in more politically challenging regions.
This episode was recorded on May 24, 2023.
Watch the full episode featuring Greg Barnes discussing market trends and outlook on MoneyTalk Live.
Managing Director and Head of Mining Equity Research, TD Cowen
Managing Director and Head of Mining Equity Research, TD Cowen
Managing Director and Head of Mining Equity Research, TD Cowen
