Total Metals Corp (TSXV:TT, FSE: O4N)
Total Metals Corp. is focused on advancing high-grade gold projects to production.
Spot gold and silver advanced in late U.S. trading Thursday, recovering from a recent downturn as Treasury yields pulled back, the dollar weakened and crude oil erased geopolitical risk premiums.
Gold traded near $4,120.80 an ounce, up 1.13% to reclaim the $4,100 level, while silver gained 2.82% to $59.95 an ounce, climbing back above the $60 mark. Market strategists say the pullback is a healthy correction within a sustained long-term bull market, and the slump in precious metals mining equities has created an outsized buying opportunity as valuations diverge sharply from strong corporate fundamentals.
The rebound gathered momentum as markets absorbed the Federal Reserve’s latest meeting minutes and receding supply fears in the Strait of Hormuz. The 10-year U.S. Treasury yield eased to 4.53%, after touching a seven-week peak of 4.60% on Wednesday, lowering the opportunity cost of holding non-interest-bearing bullion. The U.S. Dollar Index fell back below 101, further lifting demand for dollar-priced precious metals.
Crude prices retreated as shipping lanes through the Strait of Hormuz remained open, with no naval blockade materializing and Iranian tankers continuing to transit the waterway. Brent crude slipped below $76 a barrel, cooling inflation jitters and tempering expectations for aggressive near-term Fed rate hikes — a shift that has cleared the way for metals to bounce.
Still, technical resistance caps near-term upside. Gold has yet to break through the $4,162–$4,214 resistance zone that halted its last rebound, while silver remains below the $61–$62 band, pointing to continued two-way trading in the days ahead.
“This is a pause in a broader bull market, not a trend reversal,” said Nawojka Wachowiak, Senior Portfolio Manager at Ninepoint Partners. She argued that investors have become overly focused on short-term Fed policy shifts, overlooking the structural tailwinds that have supported the multi-year rally.
Central bank gold purchases remain on pace to reach roughly 1,000 tonnes this year, equivalent to 15% to 20% of annual global mine production, forming a durable price floor near $4,000 an ounce. Wachowiak also cited persistent geopolitical risks and widening fiscal deficits worldwide as core long-term drivers that have not gone away.
Erik Norland, Chief Economist at CME Group, echoed that view. With the U.S. running a fiscal deficit of 5% to 6% of GDP — and major economies including China, Brazil and the eurozone carrying similarly large shortfalls — concerns over long-term sovereign debt sustainability will persist regardless of near-term rate moves, he noted.
The correction has been far sharper for mining stocks than for physical metal, leading analysts to warn of a deep mispricing. Gold producers are operating in the strongest financial position in the industry’s history, with all-in sustaining cost margins of roughly $3,000 per ounce, strong free cash flow, and largely clean balance sheets. Most firms are returning capital to shareholders via steady dividends and share buybacks.
Valuations now sit at historically depressed levels, with many producers trading at roughly 8 times EV/EBITDA, well below their long-run averages. If gold returns to $5,000 an ounce, that multiple would compress to around 6 times. Falling energy prices are also set to ease cost pressures in the second half of the year, bolstering profitability further.
Wachowiak added that improved capital discipline across the sector — with miners prioritizing high-grade assets and margin protection over volume-driven expansion — makes the current valuation gap even more striking.
Next week’s U.S. CPI print and congressional testimony from Fed Chair Kevin Warsh will be the next major catalysts, likely to set the tone for rate expectations and determine whether metals can break through overhead resistance.
While near-term volatility is set to continue, strategists say the bigger picture remains unchanged. For patient investors, the pullback in both physical precious metals and mining equities is a window to add exposure, not a signal to step away.
