- U.S. Strategic Petroleum Reserve levels remain well below previous highs, with Bruce Campbell highlighting the potential implications if inventories eventually need to be rebuilt.
- Energy-sector momentum is beginning to improve across both Canadian and U.S. equities despite continued day-to-day volatility in crude oil.
- Gold ETF holdings have moved back above their 200-day moving average as gold enters a historically stronger seasonal period.
Energy and precious metals are showing signs of renewed momentum as investors head toward the fall.
In the latest episode of Markets in Motion, Bruce Campbell of StoneCastle Investment Management examines the U.S. Strategic Petroleum Reserve, changing momentum across energy stocks and several signals suggesting gold may be regaining strength following its spring correction.
The U.S. Strategic Petroleum Reserve remains substantially below its previous levels, and Campbell highlights the potential impact of eventually rebuilding those inventories. While crude prices continue to experience significant short-term volatility, relative rotation graphs are beginning to show improving momentum across the TSX and U.S. energy sectors.
This article is being disseminated on behalf of StoneCastle Investment Management a third-party issuer and is intended for informational purposes only.
Gold starts moving again
Gold is also attracting Campbell’s attention after moving sideways and lower following its strong run earlier in the year.
One signal comes from global gold holdings in exchange-traded funds. Campbell notes that ETF holdings have moved back above their 200-day moving average after falling below it during the spring correction. He compares the move with 2024, when holdings crossed above the same long-term trend indicator as gold began its breakout.
Seasonality could provide another tailwind. Historical patterns presented in the episode suggest late August marks the beginning of what has typically been a stronger period for gold.
Relative rotation graphs are also showing movement across gold-related equities, including the GDX and GDXJ, alongside the copper index. Together, Campbell sees the signals as worth watching as commodity investors position for the months ahead.
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