The price of spot gold recently dropped below $2,650 following a short rally at the start of the year. This suggests that buyers are still struggling, with an increase in price higher than $2,665 potentially paving the way back to last year’s highs of $2,720.
During the same period, WTI crude oil has observed a significant increase in its price, with bullish momentum remaining strong. Some expect crude oil’s price to surpass its $74 high from last week, with concerns over tighter Iranian and Russian oil supply due to sanctions imposed by the West growing. The ban placed on U.S.-sanctioned oil vessels from Shandong Port Group’s ports is also adding pressure to supply in China.
These concerns on supply tightness have, in turn, driven demand for Middle Eastern oil higher, evident in the decision made by Saudi Arabia to increase oil prices for Asia come next month. Colder weather in Europe and America is also pushing demand for crude oil as demand for heating increases.
Despite this, others note that any price lower than $72.60 indicates that the downtrend has resumed, potentially leading to additional declines towards last year’s lows.
Over the last 3 weeks, the price of natural gas has also experienced great volatility. Late last month, a surge saw prices go up to $4000 for the first time in nearly 2 years, ending 2024 with an over 40% increase. Soon after this, the price dropped significantly, canceling out the majority of the gains made since mid-December.
At the start of this week, the price recovered again, which further fueled bullish sentiments.
2025 outlook
Different forces are expected to influence oil prices this year, including incoming President Trump’s energy policies, economic strategies implemented by China, and the current transition to clean energy. Experts also expect that in 2025, the natural gas market will remain volatile, balancing geopolitical risks and demand with growth in production.
Forecasts by the Energy Information Administration suggest that the production of this commodity in America will increase, driven by LNG export demand. Already, America’s export capabilities have grown, with new facilities like Corpus Christi and Plaquemines being commissioned. Additional capacity from an ExxonMobil-QatarEnergy joint venture may further strengthen exports.
Over the short-term, prices are expected to rise as temperatures dip, with analysts noting that a change in temperature trends could change this course. In other news, the price of silver has risen to $30.34 per troy ounce while that of copper has recovered from its January low.
While gold may have faltered over recent days, gold exploration firms like Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF) know that the long term prospects of this precious metal are bullish, so they are unlikely to put the foot off the pedal in their activities.
NOTE TO INVESTORS: The latest news and updates relating to Arizona Metals Corp. (TSX: AMC) (OTCQX: AZMCF) are available in the company’s newsroom at https://ibn.fm/AZMCF
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