Commodities Wrap 6 July: Silver and Gold Lead a Metals Rally as Oil Eases After the OPEC+ Increase
Commodities settled broadly higher on Monday, led by a strong rally across precious and industrial metals, while crude oil eased modestly after the weekend decision by OPEC+ to raise output. The levels below reflect the day’s exchange settlements, struck through the early to mid New York afternoon.
Precious metals set the day’s tone. Gold rose 1.22 percent to settle at US$4,176.10 an ounce, holding at elevated levels as safe-haven demand and a softer real-rate backdrop supported non yielding assets. Silver was the standout, jumping 2.56 percent to US$62.63 an ounce and clearly outpacing gold, while platinum added 0.97 percent to US$1,643.90 and palladium rose 0.67 percent to US$1,281.00. Silver’s outperformance put the gold to silver ratio at about 66.7, our calculation, meaning one ounce of gold bought roughly 66.7 ounces of silver. A lower ratio usually signals that silver is outpacing gold, and can reflect stronger industrial demand or a broader investment bid across the precious complex. The breadth mattered: investors bought not only defensive gold but also silver, platinum, palladium and copper, giving the move a clearer industrial and cyclical component.
Oil was the soft spot. West Texas Intermediate slipped 0.19 percent to settle at US$68.56 a barrel while Brent eased 0.17 percent to US$72.00, leaving the Brent to WTI spread at about US$3.44 a barrel, our calculation. The subdued tone followed the 5 July OPEC+ decision to raise August output by 188,000 barrels a day, adding supply into a market already carrying ample availability and cautious demand expectations. Natural gas bucked the energy weakness, rising 1.56 percent to US$3.246 per million British thermal units.
In base metals, copper, a bellwether for global industrial demand, gained 1.39 percent to US$6.255 a pound, extending its recovery as a softer dollar and firmer risk appetite lifted industrial metals, though the level still points to an improving rather than booming industrial demand backdrop.
Why it matters: The session’s signature was a broad metals rally led by silver and gold even as oil softened, a divergence that reflects two different forces at work, monetary and industrial demand lifting metals while added OPEC+ supply caps crude. For MENA the mix is double-edged: softer oil trims revenue momentum for producers such as Saudi Arabia and Kuwait, especially where budgets remain sensitive to crude levels, while elevated gold prices support the value of the central-bank bullion reserves that several regional monetary authorities have been building, and strength in silver and copper points to firmer global industrial demand that ultimately supports trade, logistics and manufacturing exposure across the wider region.
Outlook: The next markers are the OPEC+ meeting on 2 August, which will set September output and remains the key swing factor for crude, the path of the US dollar and real yields, which drive gold and silver, and Chinese industrial demand, which is central to copper. If the dollar stays soft and supply keeps building, the divergence of firm metals and capped oil could persist into the late summer.
Commodities, ranked highest to lowest
| Commodity | Settlement | Change |
|---|---|---|
| Silver | US$62.63 | +2.56% |
| Natural Gas | US$3.246 | +1.56% |
| Copper | US$6.255 | +1.39% |
| Gold | US$4,176.10 | +1.22% |
| Platinum | US$1,643.90 | +0.97% |
| Palladium | US$1,281.00 | +0.67% |
| Brent Crude | US$72.00 | -0.17% |
| WTI Crude | US$68.56 | -0.19% |
Sources: CNBC; CME Group.
