Gold, silver lead recovery in prices of precious metals

Gold and silver led the recover of precious metals in 2024, showing that the commodity markets remained resilient entering this year.

Gold rose 27.2%, and silver 21.4% per ounce in 2024, while platinum dropped 8.7% and palladium 17%, according to reports from Anadolu.

Gold prices briefly fell below $2,000 in February, hitting $1,984, after postponed Fed rate cut expectations and higher-than-expected US inflation. Gold reached a historic peak of $2,790.1 per ounce on Oct. 31, driven by Middle East tensions and uncertainty over US elections.

Gold closed the year at $2,623.4 per ounce — the highest annual closing in 14 years — as it remained a top safe-haven asset amid ongoing Fed rate cuts.

Silver hit $34.9 per ounce, its highest since October 2012, driven by slowing mine production and rising demand in automotive, solar panels, and electronics industries.

Analysts said that China may increase silver imports due to its use in solar panels, noting that silver could hit $40 per ounce this year if deficits continue or gold gains further momentum.

Meanwhile, the rate cuts of th European Central Bank affected gold and silver prices, while concerns over electric vehicles reduced demand for palladium.

For base metals, copper hit a record $5.25 per pound last year, gaining 3.2%, as concerns over US President-elect Donald Trump’s tariffs on China led to expectations of increased support measures. Supply concerns grew due to a lack of new mining projects and market shortages.

Weak eurozone growth, a strong US dollar, and geopolitical risks weighed on base metals.

US and UK also banned Russian aluminum and copper, pushing prices higher.

President Joe Biden’s call to triple tariffs on Chinese steel and aluminum raised concerns, while China’s economic stimulus steps suggested higher demand for base metals.

Reports that Chinese copper smelters reduced production heightened supply concerns. Additionally, global mines cut production, contributing to shortages.

The shift toward green energy also drove copper prices higher. Copper is essential in power cables, wind turbines, electric vehicles, and solar panels.

Market expectations that the Fed’s rate cuts would boost demand for industrial metals and support economic growth pushed copper and silver prices further.

Meanwhile, the price of aluminum rose 7.2% after London-based miner Rio Tinto declared force majeure on aluminum shipments from its Queensland refineries due to gas shortages.

Falling Chinese aluminum stocks, along with demand from the renewable energy sector, further tightened supply, contributing to price hikes.

Zinc prices rose 12.5% due to mine shutdowns and reduced production, raising global supply concerns.

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