Commodities Face Ongoing Volatility in 2024 Amid Economic Uncertainty
• Macroeconomic headwinds and geopolitical events will continue affecting commodities markets in 2024. Interest rates expected to fall after aggressive hikes to combat inflation.
• Fundamentals will regain influence over metals prices as supply constraints emerge. Mine and smelter issues limiting production for some metals.
• Gold prices seen remaining high and volatile in 2024 driven by dovish Fed policy and geopolitical tensions. Strong central bank demand supporting prices.
• Oversupply and weak demand to pressure lithium, cobalt and nickel prices lower in 2024 despite growth in electric vehicles. Possible cobalt price increase on supply discipline.
• China's economic stimulus and domestic steel demand to support higher iron ore prices in 2024 versus lower levels for zinc on manufacturing activity and inventory accumulations.