The shifting political landscape in the U.S. is set to influence commodity markets, with copper, oil, and gold facing distinct pressures. Bart Melek, Head of Commodities at TD Securities, highlights how policy changes could weaken demand for copper, potentially pushing prices lower. This comes as questions arise about AI-driven copper demand and easing geopolitical tensions.
Oil prices may ease, but supply constraints could keep them from falling too sharply. Melek points to tight crude supplies as a key factor that might limit downward pressure on oil prices, despite potential demand shifts.
Gold, on the other hand, could see a revival in prices due to lower interest rates and a weaker U.S. dollar. These factors are expected to create a more favorable environment for the precious metal.