Ryan Stancil,
Editor
May 12, 2025
Commodity Callout
Between the Fed’s decision to keep interest rates where they are and the market hoping for negotiations with China, gold saw gains that it made over the course of the week evaporate and pull the price right back to where it started. This could be the norm for some time while traders watch as the Fed enacts a policy of “wait and see.” Of course, things like inflation, market conditions, and geopolitics will also weigh on the price. It will be interesting to see how those come into play with tensions between India and Pakistan flaring, among other issues.
Metal Price Update
Gold — Gold had a whiplash-inducing week but largely ended the week where it started at around $3,340 per ounce. At one point, it did surpass $3,400 before pulling back. The bull is still showing signs of life, and this is the level where you should be buying in. The fundamentals have gold going up from here.
Silver — Silver largely followed the same narrative as gold, starting and ending the week at around the high $32 per ounce range. It got close to $33.50 at one point before coming back down, showing that it has plenty of tailwinds behind it.
Copper — Copper started at around $4.70 per pound, climbed to around $4.80, fell to just under $4.50 and then climbed back to the week’s starting point in another up-and-down trend for the week. Being under continued threat of tariffs means copper is all but guaranteed to continue climbing, so investors shouldn’t be worried when back-and-forth weeks like this happen.
Lithium Carbonate — Lithium took it especially hard last week, starting the week around $9,300 per ton and sliding all the way to just over $9,000. This was not at all surprising given how much of a hit the more popular commodities took. It also wouldn’t be surprising if this discouraged some traders from buying into lithium. Yet, it could also be a strong contrarian buy opportunity if these levels prove to be a floor.
Uranium — Uranium moved upward, staying between a range of $69-$70 per pound over the course of the week, which is up from the $67-$68 range of the prior week. Not much to say beyond traders are catching onto how important uranium is going to become in the near future, and they’re allocating investment dollars accordingly.
Company Callout
One company to watch is Patriot Battery Metals (TSX: PMET)(OTC: PMETF), a viable play for anyone interested in getting into the ailing lithium market. Despite the sector’s woes, this lithium miner continues to add value that will be a big benefit to it and investors when things turn around.
It recently confirmed a world-class cesium deposit, adding value to its Shaakichiuwaanaan property in Quebec. Cesium’s biggest use is in drilling fluids in the oil industry but it is also used in atomic clocks and particle physics research, just to name a few.
The cesium deposit Patriot is sitting on is already worth more than the company’s market cap, which means, when things turn around for the lithium market, it will be a bonus that brings in extra capital.
You can learn more about the company and why it’s one to own in the latest issue of Gerardo’s Junior Resource Monthly by clicking here.
Keep your eyes open,
Ryan Stancil
Editor, Resource Stock Digest