Base metals and gold edged lower as a stronger dollar added pressure to risk assets.
ING said gold investors will be eyeing this week’s jobs data, with Fed policy likely to be led by key economic data releases.
“We believe that the Fed policy will remain key to the outlook for gold prices in the months ahead.”
A modest cyclical revival in China’s growth in the first half of 2024 should help support most commodity prices, Capital Economics said, adding that its in-house proxy of China’s economic growth points to a pick-up in activity and reckons recent PMI surverys “are not reflecting economic reality.
Activity and import data all point to resilient commodity demand,” it added.
HSBC expects commodity prices to rise an average 2% in 2024 , before falling 4% in 2025. That follows a sharper-than-expected fall in 2023.
Despite the pullback, commodity prices remain at elevated levels and “squeezed supply, better Chinese demand and the energy transition are all set to support commodity prices in 2024,” HSBC said.