Gold SWOT: Both DPM Metals and Discovery Silver Shares Rose More Than 10% Last Week

Strengths

• Silver was the past week's best-performing precious metal, rising 3.73%. According to Bloomberg, silver ETFs added 1.09 million troy ounces in the latest session, reflecting strengthening investor demand. The metal continues to benefit from its dual role as both a safe-haven asset amid escalating geopolitical tensions and a key industrial input supporting long-term demand from sectors such as clean energy and electronics.
• According to Kitco, China's gold imports reached a 26-month high in May and are up 76% year to date, emphasizing robust physical demand from the world's largest gold market. Continued buying by Chinese consumers and investors is providing an important source of support for gold prices amid ongoing macroeconomic and geopolitical uncertainty.
• Both DPM Metals and Discovery Silver shares rose more than 10% this week. DPM continued to benefit from positive momentum following its second-quarter earnings beat, while Discovery Silver gained after reporting drill results that confirmed an expanded deposit at its Ontario mine. The company said 47 drill holes at the Pamour Mine showed the mineral deposit extends across all three phases of its current open-pit mine plan, with high-grade intersections identified at multiple new targets near existing deposits. CEO Tony Makuch said the results could help establish the project as a significant mining operation in Canada, according to Dow Jones.

Weaknesses

• Platinum was the worst-performing precious metal of the past week, declining 0.84%, as investor interest remained subdued compared with gold and silver. The latest CFTC data showed a modest decline in speculative net long positioning, indicating limited investor conviction despite a constructive long-term supply outlook.
• Azerbaijan's precious metals production declined in the first half of 2026, with gold output falling 17.8% year over year to 1.32 tons and silver production declining 6.9% to 1.81 tons, according to Interfax. While the decline weighs on Azerbaijan's mining sector, global gold production has largely plateaued since 2010, limiting new supply growth despite higher prices encouraging some incremental production increases.
• Russia's central bank sold a record 44 tons of gold during the first half of 2026, including 9.3 tons in June, as the government sought additional funding amid a widening budget deficit, according to Bloomberg. The move highlights how central-bank gold activity can shift during periods of fiscal pressure and could introduce additional supply into the market.

Opportunities

• Agnico Eagle increased its ownership stake in Cadillac Mines to 11.1% through a C$60 million investment, while Cadillac completed an upsized C$385 million initial public offering, according to Bloomberg. The transactions highlight continued investor appetite for high-quality gold assets and demonstrate that capital remains available for well-positioned mining projects despite broader market uncertainty.
• The Canadian government has allocated C$10 billion toward four Arctic “nation-building” projects and referred them to the Major Projects Office (MPO) to accelerate permitting, according to Raymond James. The initiatives include major infrastructure developments such as roads and are expected to support long-term economic activity in northern Canada.
• Scotia visited the Hemlo Gold Mine in Ontario and returned with increased confidence in the mine's operational and exploration potential. Analysts highlighted the strength of the operating team and ongoing efforts to optimize mining and milling rates, improve production and reduce costs over the next two-plus years.

Threats

• Bank of America forecasts total capital returns across its coverage universe will decline 18% to $3.6 billion in Q2 2026E, down from $4.4 billion in Q1 2026, driven primarily by lower free cash flow. The firm expects free cash flow to fall to $4.0 billion in Q2 2026E from $9.5 billion in the prior quarter.
• A Ghanaian court sentenced a prominent opposition politician to 20 years in prison after finding him guilty of illegal mining, marking the highest-profile conviction in the country's ongoing fight against “galamsey.” While Ghana continues efforts to curb illegal mining activity, the government has also increased pressure on gold producers to generate greater revenue, raising concerns about the country's attractiveness as a destination for new mining investment.
• India's silver imports have slowed sharply after a new licensing regime disrupted shipments, pushing domestic premiums to multi-month highs, according to Bloomberg. Many banks have yet to obtain the required import permits, creating near-term supply constraints in one of the world's largest silver markets.

********