Commodity Calls: Week Ending 24 January 2025

Gold is nearing all-time highs, driven by economic uncertainty and a weakening US dollar, with potential volatility ahead in 2025. Meanwhile, global copper demand is set to surge, and uranium is gaining momentum through expanded nuclear energy projects and resumed productions.

Join Global X each week for ‘Commodity Calls’ to explore all the recent signals and developments that occurred in the world of commodities.

Looking for more? Check out this week’s Market Moves and Thematic Spotlight.

Gold

Bullish

  • Gold is nearing new all-time highs, last seen in October 2024. Demand for the precious metal has been fuelled by uncertainty surrounding the global economic outlook, newly imposed tariffs by President Trump, and a slight reversal in the strength of the US dollar since mid-January.1

Bearish

  • Gold could experience increased volatility in 2025, according to The London Bullion Market Association.2 While their annual price forecasts submitted by analysts collectively believe the price may rise ~15% in the year, the range of forecast is one of the widest in history suggested that volatility may be on the horizon.

Explore gold with GOLD and GXLD.

Copper

Bullish

  • Copper demand for new energy applications is projected to surge by 62%, reaching 42 million tonnes by 2050.3 Teck Resources, Canada’s largest diversified miner, has highlighted this figure and expressed a bullish outlook on copper, announcing plans to invest several billion dollars to demonstrate its commitment.

Bearish

  • BHP has ended its pursuit of Anglo American in the near term.4 The group cited the deal being too expensive given the rise in the potential acquisition’s stock price in recent months (up 40% over the past year) and will only entertain it at the right price.

Explore copper with WIRE.

Uranium

Bullish

  • The Emirates Nuclear Energy Company (Enec), based in the United Arab Emirates (UAE), aims to expand its global presence in constructing, owning, and operating nuclear power plants.5 With approximately 60% of the UAE’s electricity generated from nuclear energy, the company anticipates growing energy demand in other regions, such as the US and the UK.

Bearish

  • Cameco’s joint venture with Kazatomprom in Kazakhstan has resumed production after being temporarily suspended due to the absence of required approvals.6 The resumption could impact inventory levels as the companies have fully committed to fulfilling contractual obligations, even though Kazatomprom said it does not expect significant impact on it’s production forecast.

Explore uranium with ATOM.

 

Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at 29/01/2025. Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.

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This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information is not intended to be individual or personalised investment or tax advice and should not be used for trading purposes. Please consult a financial advisor or tax professional for more information regarding your investment and/or tax situation.