The re-election of Donald Trump has sent shockwaves through the metals markets, with analysts predicting a period of uncertainty and volatility. While some metals, particularly base metals, face potential headwinds, JPMorgan’s Commodities Research team sees gold as a safe haven, driven by the ‘debasement trade.’ The report analyzes the potential impact on different metals, including aluminum, copper, and gold, and highlights key factors to watch in the coming months.
As the 2024 US Presidential election looms, Wall Street strategists are predicting significant shifts in various sectors, particularly metals, mining, and clean tech. A Democratic victory is expected to fuel the clean energy sector, while a Republican win could benefit the steel industry. This article explores the potential impacts of each outcome on specific companies and sectors, offering insights for investors looking to navigate the political landscape.
The metal and mining industry faces a surge in demand driven by the electric vehicle boom and the energy transition. While steel and coal dominate the current market, lithium, nickel, and rare earth elements are experiencing rapid growth. However, a significant investment of $5.4 trillion is needed to meet future demand and a copper supply shortage poses a major challenge.
Royal Gold, Inc. (RGLD) reported strong second-quarter 2024 earnings, surpassing analyst estimates. The company’s revenue growth was fueled by increased metal prices and strong production from key mines. This positive performance highlights the company’s resilience in the face of market fluctuations.
Mining giant BHP is reportedly considering a potential acquisition of Anglo American, which would be one of the largest mergers and acquisitions (M&A) deals of the year. Anglo American has confirmed receiving an unsolicited offer from BHP, which would involve an all-share offer preceded by the demergers of Anglo American Platinum and Kumba Iron Ore to shareholders.
Indian benchmark stock market indices, the S&P Sensex and Nifty50, ended higher on Wednesday, boosted by gains in heavyweight financials and metals stocks.
In an interview on ‘Closing Bell Overtime,’ Freeport-McMoRan CEO Richard Adkerson shared his insights on the global commodity supply chain, metal commodity demand, and market conditions in China. He highlighted the challenges faced by the industry and emphasized the importance of addressing supply-side issues to meet growing demand.
Metals are leading gains in the commodities sector this quarter, with gold, silver, and copper prices surging. This performance defies the typical sensitivity of these metals to a strong US dollar and rising interest rates. Citi strategists predict a further 5-10% rally in the short term and a potential 15-20% increase in the medium term. They anticipate a minor pullback before a surge in the second half of 2024, with gold reaching $2,500/oz and silver $30-32/oz. The rally is supported by strong market cap share, index weights, and investor interest.
