Commodity Calls: Week Ending 6 December 2024

The uranium and copper industries continue to attract significant commitments from both private sector investments, including companies like Meta, and government support, underscoring the long-term critical importance of these commodities. Meanwhile, all eyes are on China’s Central Economic Work Conference this month to assess the government’s efforts to stimulate demand and drive economic recovery.

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 ETF Express? Check out this week’s Market Moves and Thematic Spotlight.

Uranium

Bullish

  • Meta has released a request for a proposal (RFP) to identify nuclear energy developers to help meet their AI innovation and sustainability objectives.1 The company, which includes Facebook, Instagram and WhatsApp among its brands, is seeking as much as 4 gigawatts of nuclear capacity by the early 2030s in its RFP and is interested in partnering with others across the industry to bring new nuclear energy to the grid.

Bearish

  • French nuclear company Orano announced that authorities in Niger have assumed control of its Somair uranium mine.2 The military-led government has intensified pressure on foreign investors in the West African nation while ongoing production costs at the site are exacerbating the company’s financial difficulties.

Explore uranium with ATOM.

Copper

Bullish

  • Chile is set to invest US$83 billion in mining projects by 2033, with more than 50 initiatives planned across the resource-rich South American nation.3 As the world’s largest copper producer, this substantial investment marks a 27% increase from last year’s projection, underscoring Chile’s commitment to strengthening its position as a global mining leader.

Bearish

  • Investors have been disappointed by the absence of bold fiscal stimulus measures from China to revitalise its sluggish economy in addition to cooling services activity.4 However, expectations are mounting that this month’s Central Economic Work Conference could unveil new fiscal policies aimed at stimulating demand. Meanwhile, the interplay between US trade policy and the strength of the US dollar continues to shape market dynamics, with potential new tariffs or retaliatory measures likely to affect metal prices.

Explore copper with WIRE.

Gold

Bullish

  • China’s central bank resumed gold purchases for its reserves in November, ending a six-month hiatus.5 The People’s Bank of China (PBOC) was the largest buyer of gold in 2023, and the resumption signals its commitment to expanding its gold reserves despite the precious yellow metal trading near all-time highs.

Bearish

  • Global gold ETFs experienced their first monthly outflow since April, driven primarily by redemptions in Europe, while North America was the only region to record inflows in November 2024.6 Over US$2 billion exited gold ETFs during the month. Despite this, year-to-date inflows into global gold ETFs remained positive at $2.6 billion, with Europe being the only region reporting net outflows.

Explore gold with GOLD.

 

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 10/12/2024. 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.