Commodities outlook 2024 (2024)

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Commodities outlook 2024? ›

Energy prices are expected to decline by 3 percent in 2024, as notably lower prices of natural gas and coal offset higher oil prices, followed by a further decline of 4 percent in 2025. Agricultural prices are expected to ease as well in this year and next amid improved supply conditions.

Unlike prices for most other commodities, crude oil prices are set to increase by 2 per cent in 2024. Gold and copper prices are also set to rise this year, by 8 per cent and 5 per cent, respectively.

After three years of extreme volatility, commodities prices are set to broadly stabilise in 2024. However, adverse weather conditions, escalating geopolitical tensions and soaring shipping costs are among the risks to watch to commodity price forecasts.

In 2024, nickel, iron ore, and zinc prices are projected to post the most significant declines year-on-year, at 21%, 9%, and 6%, respectively. However, copper and tin prices are forecast to increase modestly by 5% and 4%, respectively, while aluminum is expected to see a slight rise of 2%.

The Bank's forecasts indicate that Brent prices will average $84 per barrel in 2024 before declining to an average of $79 in 2025, assuming no conflict-related supply disruptions. If the conflict in the Middle East were to escalate further, however, oil-supply disruptions could push up global inflation.

From all analytics by the Federal Reserve and central banks, gold is undoubtedly the best precious metal in 2024. Thanks to its strange economic behavior, it is the best investment for financial turmoil. In all the history of precious metals, gold will win the best precious metal in a row.

Three of the most commonly traded commodities include oil, gold, and base metals.

A GlobalData poll found that gold, lithium, and copper are among the commodities set to see the greatest price increases in 2024. The lower price of lithium has been attributed to weaker-than-expected demand for EVs.

We appear to be in the early innings of a new upcycle as prices across metals, energy, and agriculture accelerate following years of declines. This article analyzes the indicators supporting a new commodity boom forming and recommends strategies to capitalize.

What will happen to gold in 2024? ›

According to Coin Price Forecast, gold may reach $2,419.00 per ounce by the middle of the year. By the end of 2024, experts anticipate that the value of the precious metal will continue to rise to $2,651.00.

We foresee average GDP growth around 2.4% in 2024 and 1.7% in 2025. Slowing labor market: While strong on the surface, the labor market sent some mixed signals in May. The combination of robust payroll growth (up 272k), firmer wage growth at 4.1% and weaker labor supply pointed to a labor market that remains tight.

The future rate of gold is anticipated to rise, reflecting its role as a safe-haven asset amid global economic challenges. Analysts believe that gold could reach Rs. 70,000 per 10 grams in 2024, driven by factors such as geopolitical conflicts, inflationary pressures, and economic slowdown concerns.

Commodity prices are projected to experience a slight downturn in 2024 and 2025 but are expected to remain above pre-pandemic levels. Energy prices are expected to decline by 3 percent in 2024, as notably lower prices of natural gas and coal offset higher oil prices, followed by a further decline of 4 percent in 2025.

Commodity prices have been relatively flat overall since late 2023. However, prices of some key commodities such as oil and copper are trending higher in 2024. Global economic growth trends often play a significant role influencing commodities markets.

As of May 6, natural gas futures for June at the Henry Hub remain above $2.00 per MMBtu, and CME Group projects prices to rise above $3.00 by late 2024.

Overall, Yardeni Research forecasts S&P 500 operating earnings at $250 in 2024, up 12% vs 2023. He puts them at $270 in 2025 (up 8%) and $300 in 2026 (up 11.1%). These figures compare with analysts' consensus forecasts of $244.70 in 2024, $279.70 in 2025 and $314.80 in 2026.

A GlobalData poll found that gold, lithium, and copper are among the commodities set to see the greatest price increases in 2024.

GDP growth in the United States is projected to be 2.6% in 2024, before slowing to 1.8% in 2025 as the economy adapts to high borrowing costs and moderating domestic demand.

Those include a good share of minerals and metals commodities (copper, nickel, aluminium, lithium, cobalt, tin, rare earths, metal scraps and green steel) and of agricultural commodities (including poultry, dairy, fish and crustaceans, soybean, corn, cocoa, fruits and vegetables and new agribusiness areas such as ...