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Gold prices (XAUUSD:CUR) ticked higher at the start of the week after dropping in the previous session, helped by a softer U.S. dollar, as investors geared up for key inflation data this week, while oil prices, too, traded in the green.
Palladium futures (XPDUSD:CUR) extended their gains after rising as much as 11% on Friday. Palladium, mainly used in the autocatalysts curbing harmful emissions, remains supported by tight supplies. ETFs: (PALL), (PPLT), (SPPP)
J.P. Morgan in its latest note said it remains structurally bullish on gold and silver and perceives the recent consolidation as a buying opportunity with a target of $2,600/oz and $34/oz, respectively, in 2025. The current levels in copper, too, present a good re-entry point towards the brokerage’s $11,500 target by 3Q25, it added.
“The recent pullback in commodities is just that—a pullback—and we continue to see a 10% appreciation in the broader BCOM Commodities index by year-end,” JPM further said.
Furthermore, after rallying ~12%, U.S. Henry Hub natural gas moves from JPM’s #1 buy recommendation in April to the bottom of the list for now. “Another rally in price to our unchanged $4 target for the Dec’24 contract will likely manifest by September, making the timing of entry key for this commodity,” the investment bank noted, as it updated the 2025 natural gas price forecast to $4.30/MMBtu.
Oil prices were trading higher on the day, supported by expected summer demand and persistent geopolitical tensions.
“The chief underlying reason behind the price strength … is the growing confidence that global oil inventories will inevitably plunge during the summer in the Northern Hemisphere,” Tamas Varga of oil broker PVM told Reuters, referring to seasonal demand for oil products.
Prices were also supported by the latest round of Ukrainian drone attacks on Russian refineries. Meanwhile, EU countries on Monday agreed a new package of sanctions against Russia over its war in Ukraine, including a ban on reloading Russian liquefied natural gas in the EU for further shipment to third countries.
In terms of economic data, the U.S. personal consumption expenditures price index on Friday, will be closely watched by markets.
Recent Commodity Price Movements and A look At Some ETFs
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Energy
Metals
Agriculture
Commodity ETFs
Gold ETFs:
Other Metal ETFs:
Oil ETFs:
Agriculture ETFs:
