Weekly Commodity Insights : Copper prices gained 0.5% last week - Axis Securities Ltd
The Week That Was
Gold prices on COMEX settled slightly lower and traded sideways last week due to thin volumes during the holiday season, with most markets closed for Christmas. The precious metal faced pressure from stronger U.S. Treasury yields as market participants shifted their focus to 2025 for fresh catalysts. Persistent pessimism over the likelihood of significant U.S. interest-rate cuts in the upcoming year kept downward pressure on gold prices. Hawkish commentary from the Federal Reserve and the inflationary implications of proposed policies by President Donald Trump added to the bearish sentiment. Higher-for-longer interest rates continue to weigh on the appeal of non-yielding assets like gold.
COMEX silver extended its losing streak to a third consecutive week, pressured by a stronger U.S. dollar and year-end profittaking. Silver prices pulled back significantly after reaching a multi-year high of $34.86 in early November following Trump’s presidential election victory. Traders now await fresh direction after Trump's inauguration on January 20, 2025, which could set the tone for the year ahead.
NYMEX crude oil ended last week on a positive note, rising over 1.5%, supported by a decline in U.S. oil inventories. Market participants are now assessing the outlook for Chinese demand and the potential impact of higher supply from non-OPEC+ producers, which could shift the global market balance toward a surplus in 2025.
Copper prices gained 0.5% last week. It traded in a narrow range amid subdued holiday activity and a lack of significant market drivers. As we look ahead to 2025, attention is increasingly focused on potential Chinese fiscal stimulus measures to rejuvenate its struggling property sector, which could emerge as a pivotal factor. Market analysts highlight China's plan to issue a record 3 trillion yuan in special treasury bonds in 2025, up from 1 trillion yuan in 2024, which could drive demand for industrial metals moving forward
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