Global demand growth is set to slow to its weakest pace since the global financial crisis, causing investor sentiment towards industrial metals to deteriorate. Both of these factors should drag industrial metals prices lower this year. In stark contrast, precious metals prices should rally on the back of safe-haven demand.
In 2020, we expect gold and silver prices to stabilise as safe-haven flows ebb as US equities recover. Meanwhile, rate cuts by the Fed will help improve investor sentiment towards industrial metals. This may well encourage a closer examination of fundamentals, which for many metals will show market deficits and a limited number of new mines set to come on stream. This should help prices to recover.
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