ARSLAN ALI

Precious Metals Fundamentals Rest on Structural Demand and Tight Supply As of June 24, the fundamentals for the Precious Metals complex are anchored by strong demand and limited supply. Central banks around the world continue to buy in an effort to diversify in the face of the growing global debt burden and concerns about currency values, and they have been buying in net terms for a number of consecutive quarters. Mine production of both gold and silver remains quite constrained.

Oil and Natural Gas Fundamentals Reflect Steady Supply and Seasonal Demand Oil markets are supported by continued discipline from OPEC+ alongside growing non-OPEC+ supply, especially in the U.S. shale plays. Refinery utilization remains elevated to support demand for transportation and petrochemical feedstocks. There have been small draws in inventories of oil storage, reflecting a balance in the supply and consumption of oil during the summer driving season in major consuming markets.

Precious Metals Fundamentals Hold Steady as Supply Risks Ease On June 23, gold and silver were trading slightly more calmly after the US and Iran signed a memorandum of understanding, which will reopen the Hormuz strait and allow an easing of previous energy supply constraints. Any short term decline in risk driven safe haven demand can be offset with long term supports in place for both metals.