Gold prices are expected to remain positive in the near term, supported by the weaker US dollar, inflation expectations and declining real yields. Improving consumer demand in countries such as India and China is expected to further support prices.7
At the same time, positive breakthrough on COVID-19 vaccines along with strong Chinese demand are expected to continue to support base metals prices in the near term.
Copper prices are likely to maintain their growth trajectory on the back of an expected recovery in the global economy and market deficit conditions. S&P Global Market Intelligence expects the copper market to be in a deficit of 87,000 tonnes in 2021 driven by strong Chinese market demand.8
Nickel prices are expected to remain bullish in the near term, triggered by the global economic recovery and accelerated production of electric vehicles.9 Zinc prices should also remain elevated owing to Chinese demand.
Iron ore prices are also expected to remain high in the short term driven by tight supply conditions. The global iron ore market is expected to remain in deficit in the medium term amid a slower ramp-up in Brazilian exports and strong Chinese stainless-steel demand.10