In February, the spotlight shone brightly on the precious metal, gold, as it reached yet another peak at month-end. Despite falling short of breaking the significant US$3000 per ounce mark, gold continued to assert its dominance with a 0.8% increase, closing the month on a high note. The investment landscape has been heavily influenced by the uncertainty stemming from global geopolitical tensions, further fueled by a Trump presidency in the USA.

Analysts and banking experts have been abuzz with predictions of gold climbing to US$3000 per ounce, while some have even more bullish outlooks, suggesting a potential surge to US$3600 per ounce. The latter part of February saw a temporary dip in gold prices, only to witness a resurgence in early March as the US dollar weakened and fears of tariffs on various products loomed. This led to a rally in gold prices, pushing it back up to US$2880 per ounce.

Gold demand soared to new heights in 2024, with the World Gold Council reporting a peak demand of 4974 tons. Central bank demand remained robust, surpassing 1000 tons for the third consecutive year, while investment demand spiked by 25% to 1180 tons. Experts in the field have emphasized the undervaluation of gold miners, projecting a potential surge of 50-100% in equity valuations with the entry of generalist funds into the gold market.

Conversely, coal and uranium prices experienced a downturn in February, with energy commodities struggling to maintain their momentum. Gold’s resilience contrasted sharply with the lackluster performance of coal and uranium, highlighting the dynamic nature of the commodities market. As gold continues to hold its ground as a reliable investment option, rare earths and copper also witnessed positive trends, marking consecutive monthly gains in February.

The rare earths sector, particularly NdPr Oxide, displayed signs of recovery with two consecutive months of gains, signaling a potential turnaround. China’s efforts to tighten its grip on rare earths supply have raised concerns about market manipulation, prompting other nations to explore alternative sources. Australia, with its abundant rare earth resources, could emerge as a key player in the sector, offering a secure supply chain for critical minerals.

Copper prices saw an uptick in February, driven by speculation around potential tariffs and demand-side improvements, particularly from China. Despite facing challenges such as a stronger US dollar and geopolitical uncertainties, copper prices remained resilient. The market dynamics reflected a mix of supply chain disruptions and demand growth, with experts optimistic about the red metal’s future prospects.

In conclusion, the month of February witnessed divergent trends in the commodities market, with gold shining brightly amidst a backdrop of economic uncertainties and geopolitical tensions. While gold continued its upward trajectory, coal and uranium faced challenges, underscoring the volatility and complexity of the global commodities landscape. Amidst these fluctuations, rare earths and copper showed promise, hinting at evolving market dynamics and the ongoing quest for stable investment opportunities.