1st June 2017

 Gold finished higher on Wednesday, gaining roughly $10/ounce to finish at a one-month high. We also saw solid advances in platinum and palladium, although silver finished practically unchanged. Gold did well to hold up as well as it did given that crude markets were again under severe pressure, losing about $1.50 on the day and sinking to a three-week low. It seems that despite high OPEC compliance, investors are not that impressed by the recent accords given that production is springing up from alternative sources. As examples, Reuters notes today that Libyan output (exempt from the cuts) has already surpassed a three-year peak after logistical glitches have been remedied of late. Separately, US production has been moving steadily higher as well, something that practically no one expected a few years ago after energy prices cratered.