This month, gold futures have surpassed the $3,000 per troy ounce threshold, with Bank of America projecting a potential increase to $3,500 per troy ounce over the next two years. The company asserts that achieving the new target is contingent upon a 10% increase in investment demand for gold. The sources of this demand are multifaceted, encompassing persistent purchases by central banks alongside a sustained interest in gold ETFs from retail investors. Bank of America notes that uncertain geopolitical conditions may provide a favorable backdrop for gold futures. In the early stages of trading, the most actively traded gold futures have increased by 0.1%, approaching $3,028 per ounce.

Commodities have experienced significant movement in 2025, driven by the fluctuations associated with President Trump’s tariff disputes, according to Ole Hansen of Saxo Bank in a recent analysis. Hansen indicates that the robust performance of precious metals is driving a 7.9% increase in the Bloomberg Commodity Index year-to-date, with precious metals themselves appreciating by 15.2% during the same period. Gold has surged to remarkable heights, exceeding $3,000 per troy ounce, while silver has reached levels not observed since 2012. These precious metals are the primary beneficiaries in 2025, as investors gravitate towards safe havens and central banks aim to diminish their reliance on fiat currencies, according to Hansen. Natural gas has experienced a significant surge at the beginning of the year, increasing by more than 25%, whereas crude oil prices have faced challenges. Agricultural commodities have recorded a year-to-date increase of 2.2%.

Palm oil concluded the trading session on an upward trajectory, buoyed by favorable market sentiment. Investor sentiment has been bolstered by anticipations of a reduced scope for U.S. tariffs, while the attractiveness of Malaysian equities as a more secure option is expected to contribute to additional gains, according to a commentary from Kenanga Futures. From a technical standpoint, crude palm oil futures have been oscillating between 4,200 and 4,700 ringgit per ton since mid-December 2024, according to commentary from Phillip Nova analyst Lim Tai An. The analyst indicates that resistance is observed at approximately 4,330 ringgit per ton, while support is expected to emerge around the 4,200 ringgit mark. The Bursa Malaysia derivatives contract for June delivery increased by 14 ringgit, reaching a total of 4,259 ringgit per ton.

The copper market is expected to maintain a sufficient supply, as the robustness of Chinese demand for the metal is not anticipated to endure, according to a note from Julius Baer, which reaffirms its neutral outlook. The analysis indicates that the underlying conditions for the metal are “rather soft,” as evidenced by decelerating growth in the U.S. and ongoing weakness in Europe, which suggest a lack of robust demand. Last year, China’s copper demand exhibited strength, driven by the government’s objective to finalize incomplete property projects, an emphasis on boosting exports, and preemptive actions taken in anticipation of U.S. tariffs. Julius Bear does not anticipate the persistence of these factors. Simultaneously, there has been a notable increase in output growth, indicating a generally well-supplied copper market, it adds. The three-month LME copper contract has experienced a decline of 1.3%, currently priced at $9,984 per ton.

Macquarie suggests that Ramelius Resources is unlikely to resume operations at Spartan Resources’s Dalgaranga processing plant if its A$2.4 billion cash-and-stock acquisition of the Australian gold explorer is finalized. The bank posits that Ramelius is likely to undertake a more substantial enhancement of its Mt Magnet mill. Macquarie notes that Ramelius had previously intended to increase the annual processing capacity of the Mt Magnet mill to approximately 3.0 million tons of gold-bearing ore at a cost of A$95 million. Macquarie estimates that its processing capacity may increase to 4.2 million tons per year, with an associated expenditure of approximately A$220 million. Macquarie has revised its rating for Ramelius from “neutral” to “outperform.”