evening wrap, july 10

market vibes

“The longer I live, the more beautiful life becomes.” Frank lloyd Wright

All exchange traded metals were higher today except LME lead. Silver was surprisingly strong in the post, usually indicating early interest from Shanghai. The consensus building under copper is the market is going to auction forward demand and inventory instead of spot consumption. Therefore the 50% tariff is bullish. I thought XPT would get over the top today, but it there was aggressive selling on the equity opening especially in gold.

Oil went down on mixed reports from Vienna. Demand will rise for the next 4 years but not as much as previously forecast. Production increases may pause after August which would total nearly 2 mm bpd since April; a lot of oil.

The 30-yr bond auction sold $22B at 4.889% yield, flat vs. 4.890% WI. Bid-to-cover 2.38, foreign buyers at 59% were the lowest since 2019. Stock indexes were moderately higher in quiet trading.

Let’s look at some charts.