According to the latest comments from analysts at BMO Capital Markets, investment sentiment in the commodities space is subtly changing, with investors focusing more on copper and less on battery metals.
A survey of attendees at the 33rd Annual Global Metals, Mining and Critical Minerals Conference revealed copper as the metal with the most potential for 2024.
Analysts noted that the potential benefits from spending on upgrading the global power grid have been taken seriously by investors in the copper market.
When attendees were asked which commodities they would hold over the next five years, 62 per cent said they would hold copper. This was followed by gold, which 22 per cent said the precious metal was their long-term investment choice.
Only 13 per cent of attendees said they would hold lithium and 2 per cent said they would hold iron, roughly the same as last year’s survey results.
BMO also noted that, surprisingly, investor interest in critical and battery metals declined at this year’s conference. Not just investors, but even the number of OEMs of lithium, nickel and other critical metals attending the conference was lower than last year.
BMO said 50 per cent of respondents believe the price of gold will run between $1,950 and $2,150 an ounce; 32 per cent believe the price will be between $2,150 and $2,350 an ounce; and 11 per cent expect the price of gold to accelerate further this year to stand at $2,350 by the end of the year.
Analysts note the somewhat outdated view that investors are focused on the dollar and interest rates, while paying little attention to central bank gold demand. Analysts remind investors that consumer demand in China is an undervalued driver of gold and expect net buying by emerging market central banks to be a key support for the gold price over the next decade.
