Commodity Prices Post Best Start To Year In Over A Century – What’s Next?

As the first quarter comes to a close, there is no denying that Commodity prices have made an explosive start to 2024 – with a long-list of Metals, Energies and Agricultural markets notching up astronomical gains – firmly positioning the sector on track for its best start to the year in over a century!

Cocoa Prices Soar to 50-Year Highs, Uranium Enters “Third Bull Market”

This month, we’ve seen Cocoa prices soar to the highest level in 50-years – racking up double digit gains on a consecutive weekly basis.

Last week, Cocoa prices soared over 25% to reach a new all-time high of $8,900 per tonne. The uptick in prices continued on Monday with Cocoa breaching a new historic high of $9,300 per tonne.

Cocoa prices are now up 125% from their opening price of sub $4,000 per tonne at start of this year and have more than doubled in the short space of two and half months.

More impressively, Cocoa prices have now tallied up a staggering gain of over 260%, from this time last year, when prices were trading at $2,495 per tonne.

Elsewhere this quarter, Uranium’s “third bull market” has been on a blistering run with spot prices catapulting above $106 per pound to hit their highest level in 17 years. That’s more than a 100% increase from their 2023 low. It is also a whopping gain of over 350% from their 2020 low.

New All-Time Highs for Gold Amid Fed Rate Cut Signals

But there’s one Commodity that’s capturing everyone’s attention right now – And that’s Gold.

On Wednesday, a seemingly ordinary day for the markets turned into something extraordinary after Federal Reserve officials confirmed their outlook for three interest-rate cuts this year – sending Gold prices surging to a new all-time high of $2,222 an ounce.

Gold prices flipped into supersonic mode, blasting through a new all-time high for the “third time” this month on comments from Fed Chair Jerome Powell signalling that while underlying inflation will come in slightly hotter this year – that will not dissuade the committee from lowering interest rates from their current 23-year high.

According to GSC Commodity Intelligence – what we’re seeing is nothing short of a perfect storm which could see Commodity prices not only reach new historic highs, but soar way beyond them!

Interestingly, right now every price target Wall Street predicts is being exceeded in a matter of months, if not weeks – forcing strategists to bump up their forecasts on a regular basis.

That in itself, is like nothing we have ever experienced before.

To quote analysts at GSC Commodity Intelligence – “abnormal gains in abnormal times are now the new normal for the Commodity markets”.

For traders, this is an opportunity to celebrate and capitalize on, which is why a long list of the world’s most powerful Wall Street institutions have dubbed the current economic climate “The Golden Age of Trading”.