Gold Shows Resilience Despite High Yields, Silver Faces Oversupply, Copper Poised for Big Gains – Deutsche Bank’s Ghali

Gold has held up remarkably well despite multi-decade highs in bond yields. Daniel Ghali of Deutsche Bank notes the metal has avoided new lows since July even as 10-year US yields exceeded 5% and oil traded above $100. He sees echoes of 2022 but stresses central bank buying has more than doubled and institutional participation has grown substantially.

Silver’s outlook has turned to oversupply. Inventories in London, Comex and Shanghai have risen sharply, while elevated prices triggered demand destruction, especially in Chinese solar applications, potentially creating a physical surplus next year and causing silver to lag gold.

Copper offers the largest upside potential due to acute scarcity. Ghali highlights that the US and China together have locked up roughly 70% of global inventories, setting the stage for sharp price increases in the near to medium term.