Industrial metals posted gains in the third quarter, with silver up sharply and copper touching its highest prices in over two years, suggesting that the worst of the coronavirus hit to the economy may be over.
The third quarter economic backdrop was “very supportive of the overall commodity complex,” including industrial metals, says
, senior asset manager at RJO Futures. “The ‘reflation’ trade, assisted by the reopening of the economy and record [Federal Reserve] and government stimulus, helped the metals complex gain plenty of fervor” following the second quarter Covid-19-related shutdown and economic collapse.
On Sept. 30, silver futures posted a 26% climb for the third quarter and copper futures finished about 11% higher.
“Optimism around the reopening of the global economy, continued rally in risk-on assets, improving global economic data, and the hopes of additional stimulus helped propel