Written Commentary
Ag Market View for Jan 14.25
January 14, 2025
GOLD
February gold futures are higher and trading at the highest level since December 13, sustaining recent gains as investors continued to evaluate the Federal Reserve’s monetary policy stance ahead of key U.S. employment data.
Gold received support following a weaker-than-expected private employment report for December, which strengthened the belief that the Federal Reserve may need to adopt a more cautious approach to rate cuts.
According to the World Gold Council, physically-backed gold exchange-traded funds recorded their first inflows in four years, led by Asia.
In the longer term view, the precious metal remains supported by persistent geopolitical tensions and expectations of continued central bank buying.
SILVER
March silver futures are higher and trading at the highest level since December 13 as investors digested yesterday’s release of the minutes from the December 18 Federal Open Market Committee meeting and it’s cautious outlook on interest rate cuts. The Fed’s uncertainty over inflation and potential tariffs under President-elect Trump’s administration is fueling silver’s appeal as a safe-haven asset.
In addition, increasing industrial demand, especially in the renewable energy technologies and electronics sectors, have supported the price of silver. Geopolitical tensions and economic policy uncertainties have also added to market volatility, prompting investors to seek refuge in precious metals like silver.
COPPER
March copper futures are higher and are trading at the highest level since November 11, extending this week’s rally to over 5.0%. This marks the strongest weekly performance since late September. Investors are still evaluating China’s economic outlook after recent inflation data indicated growing deflationary pressures.
Copper prices also gained support from expectations that improving demand for electric vehicles and renewable energy technologies will increase metal consumption this year.
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