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🔎 Here’s an exclusive preview of this week’s Commodity Report, giving you a taste of the depth and precision you can expect every week:
🔹 Weekly Macroeconomic Commodity Report (Excerpt)
This week’s analysis dissects fundamental strength scores, macro positioning, supply-demand imbalances, and institutional positioning across the biggest commodity markets.
🔥 Crude Oil (Neutral to Bearish Bias – 5/10) • OPEC+ remains committed to supply cuts, extending production limits through 2025, but the market remains well-supplied, with the U.S., Brazil, and Canada adding 1.5 million barrels per day. • The IEA forecasts a surplus forming by mid-2025, as global supply outpaces demand. If this continues, oil prices could face downside pressure unless OPEC+ tightens further. • Geopolitical Risks: Russian sanctions and Middle East tensions remain, but no new major disruptions are currently threatening supply.
🔹 Key Trading Takeaway: Oil remains range-bound for now, with a stronger USD and trade war risks limiting upside. Institutional traders are reducing speculative long positions in oil as the market structure softens.
🟢 Gold (Bullish Bias – 8/10) • Central banks continue to accumulate gold aggressively, with total purchases exceeding 1,000 tonnes over the past three years—a massive vote of confidence in gold as a reserve asset. • The Federal Reserve’s pause on rate hikes keeps real yields stable, which is bullish for gold as it remains an attractive hedge against economic uncertainty. • Macroeconomic Positioning: Slowing global growth, persistent inflation, and geopolitical risks are keeping demand for gold high.
🔹 Institutional Positioning: Hedge funds are adding to gold longs, and ETF inflows have turned positive after months of outflows—signaling increased investor confidence.
🔹 Key Trading Takeaway: Gold has strong long-term tailwinds, and any pullbacks are likely to be seen as buying opportunities.
🔥 Natural Gas (Bullish Bias – 7/10) • Winter demand remains strong with colder-than-expected temperatures in the U.S. and Europe. • Europe’s gas storage is down to 59%, much lower than last year’s 75%, meaning strong demand for LNG imports in summer. • U.S. LNG exports remain at record highs, supporting natural gas prices.
🔹 Key Trading Takeaway: Fundamentals remain bullish near-term, but summer demand for refilling storage will be the next catalyst to watch.
🔴 Copper (Bearish Bias – 4/10) • China’s Manufacturing PMI fell to 49.1, signaling continued weakness in industrial demand. • Global inventories remain high, with LME stockpiles holding steady and new supply coming online. • The U.S. and China’s trade tensions are escalating, which could further limit global manufacturing growth and hurt copper demand.
🔹 Institutional Positioning: Hedge funds have reduced net long positions in copper, signaling that investors lack conviction in an immediate recovery.
🔹 Key Trading Takeaway: Copper remains in a structural surplus, with demand growth lagging supply increases. Until China launches meaningful stimulus, copper may struggle to gain momentum.
🟢 Silver (Bullish Bias – 7.5/10) • Silver demand is at a record high, driven by industrial growth in solar, EVs, and 5G technology. • The market is running a supply deficit for the fifth straight year, meaning demand continues to outstrip new production. • Silver inventories are at multi-year lows, with COMEX vaults seeing steady withdrawals.
🔹 Key Trading Takeaway: Silver has one of the strongest supply-demand imbalances, making it highly attractive for long-term accumulation. The next leg higher could come if inflation fears re-emerge or industrial demand strengthens.
COPPER Happy new year traders :) still maintain a buy rating at $3.70 thereabouts, failing that will continue to stay on the sidelines. Cheers to every one and all the best for the new year