Canada Mining Weekly: Rate Expectations Continue to Pressure Metals

Research evidence excerpt

Canada Mining Weekly: Rate Expectations Continue to Pressure Metals

Canada | Metals & Mining EquityJuneResearch20, 2026

Gold vs. Oil Price (Indexed) - L5YCanada Mining Weekly: Rate Expectations

225%Continue to Pressure Metals

Gold sold off heavily later in the week as expectations of higher rates took 175%

hold, following comments by the new Fed Chairman Kevin Warsh. Investors

appear to be applying a very low probability to the following bullish scenario 125%

for gold: Inflation remains elevated, but the Fed keeps rates unchanged due to

political motivations and fiscal implications, resulting in lower real rates. Lots 75%

of company updates this week.

25%

Commodity commentary. Gold sold off later in the week to ~$4,150/oz after initially trading higher

on news of the MoU between the U.S. and Iran. We are noticing that investors are generally cautious

on gold and gold equities, and more constructive on copper and copper equities, though both (25%)

Jun-21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26

commodities pulled back this week following comments by the new Fed Chairman Kevin Warsh. XAU WTI

Given oil prices have significantly declined since the MoU, with WTI now at ~$78/bbl, we think it's .Source: FactSet, Jefferies

possible inflation and rate expectations change, and that would be positive for metals. According to

an annual survey conducted by the World Gold Council, 45% of reserve managers said they plan to

increase their own institutions' gold holdings in the next 12 months, 54% said their holdings would

remain flat, and 1% expect a decline in holdings. Many high quality gold companies in our coverage

are trading at attractive levels - see charts below. We like KGC among the senior gold companies,