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Gold prices climbed to a three-week high on Friday, driven by safe-haven demand amid escalating geopolitical tensions in Gaza and Ukraine, and heightened economic uncertainty stemming from the upcoming US presidential inauguration. While initial gains were tempered, prices remain on track for a weekly increase. The World Gold Council forecasts a more moderate price appreciation in 2025, considering factors such as economic growth and inflation. The market awaits key US economic data to assess the future path of interest rates. Concerns over potential trade wars and inflationary pressures stemming from the incoming administration's policies further underpinned gold's appeal as a safe-haven asset.

WTI Crude Oil prices remained relatively stable near $72.8 per barrel on Friday, on track for weekly gains following a recent two-month high. This upward trend is supported by anticipated economic stimulus in China and the possibility of further interest rate cuts by the Federal Reserve. China's recent wage increase for government employees signals potential economic support measures, while lower U.S. interest rates are expected to stimulate economic growth and fuel oil demand. However, U.S. crude oil inventories declined less than projected last week, potentially tempering bullish sentiment.

LME base metals experienced a downward trend today, primarily driven by strength in US dollar. The dollar surged to a multi-year high, fueled by anticipated US economic strength and a less dovish Federal Reserve. This dollar appreciation increased the cost of dollar-denominated commodities for holders of other currencies. Furthermore, weaker-than-expected Chinese manufacturing data, particularly the Caixin/S&P Global Manufacturing PMI, dampened demand prospects in the world's leading copper consumer. However, market sentiment received some support from Chinese authorities' commitment to more proactive macroeconomic policies and potential interest rate cuts, mitigating the overall bearish pressure. LME Copper is trading flat on $8805 per ton while Aluminium, Lead and Zinc is down by more tan 0.50%

European natural gas futures on course for a third consecutive weekly gain, nearing €50 per megawatt-hour on Friday amidst thin holiday trading, reflects concerns over depleting stockpiles and tighter supply following the cessation of Russian gas deliveries via Ukraine on New Year's Day. Storage levels are at their fastest depletion rate since the 2021-2022 energy crisis, now at 72% full compared to 86% last year. Colder weather further exacerbates the situation, increasing withdrawal rates. While an immediate shortage is unlikely, the tight market conditions this winter will complicate stockpiling efforts for the upcoming heating season

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