Commodity Market Volatility BIG Prediction: 2024 was mixed for the commodity market. This year was great for gold and silver. But it was a bit disappointing for crude. How was this year for commodities? Let’s take a look.
Bullion market is buzzing
The shine of gold and silver has increased in 2024. Gold prices reach record high in 2024. Whereas the price of silver has crossed Rs 1 lakh. After 2010, 2024 was good for gold. The shine of gold and silver also increased due to fall in rupee. In India, gold showed a gain of 33 percent in 2024 while silver jumped by 29 percent.
How was the performance of the energy pack?
The price of US natural gas has increased by 65% in 2024 while the highest trading was seen after December 2022. Prices have increased due to increased demand. Besides, the prices of energy packs also increased due to increasing geopolitical tension. Energy pack has also received support due to increase in LNG exports. In 2024, Brent has fallen by 5% and WTI by 3%. Crude prices fell due to falling demand in China.
An increase of 65 percent was seen in US natural gas in 2024. Whereas WTI fell by 3 percent and Brent fell by 5 percent.
Coffee, cocoa in 2024
Prices of coffee and cocoa reach record high in 2024. Arabica coffee hits record $3.5/lb. The price of robusta coffee increased by 90% in 2024. Arabica coffee prices jumped 70% in 2024. The highest rise in prices since 1977.
Whereas the price of cocoa increased by 160% in 2024. Prices have increased due to falling inventory and changes in weather. The market expects prices to rise in 2025.
base metals movement
The start of 2024 was weak for base metals. Became the best performing class by mid-May. AI, green transition gained momentum due to increased use. Global production declined in July. Weak signals from China also put pressure on base metals.
In 2024, an increase of 4.5 percent was seen in copper, 7 percent in aluminum and 15 percent in zinc.
changing trend of edible oil
There was a rise in palm, sunflower and mustard. Decline in production, supported by strong demand. There was continued pressure on soybean prices. In 2024, there was a rise of 53 percent in sunflower, 23 percent in palm oil and 23 percent in mustard. Whereas soybean declined by 24 percent.
Commodity Market: Gold prices expected to rise by 10-12% next year, know how far silver prices can go