The shifting political landscape in the U.S. is poised to impact commodity markets, with copper, oil, and gold facing distinct pressures. Bart Melek, Head of Commodities at TD Securities, highlights that policy changes could weaken demand for copper, potentially pushing prices lower. This comes amid growing questions about AI-driven demand for the metal.
Oil prices may also ease, but supply constraints could limit any significant declines. Melek notes that tight crude supplies remain a key factor in the market, despite easing geopolitical tensions. The balance between supply and demand will be critical in determining price movements.
Gold, on the other hand, could see a revival in prices due to lower interest rates and a weaker U.S. dollar. These factors often make the precious metal more attractive to investors seeking safe-haven assets.