BofA bullish on Aluminum, Copper, and Nickel in 2025

Investing.com — Financial institution of America’s expects bullish spot returns for aluminum, copper, and nickel over the subsequent six months, alongside good points in industrial metals, silver, Brent crude, pure gasoline, and agricultural commodities.

However BofA expects adverse spot returns for cotton and weak extra returns for zinc, corn, soybean oil, and Kansas wheat.

Commodity returns stay pressured by contango throughout a number of segments, together with metals, grains, and pure gasoline, although the premium on pure gasoline futures eased considerably in November.

Gold and silver futures additionally confirmed stretched premiums, buying and selling 1.7% and a couple of.1% larger, respectively, for one-month contracts.

For 2025, BofA views cyclical and structural tailwinds for the U.S. economic system, forecasting 2.3% GDP progress and inflation above 2.5%, which might push terminal rates of interest larger.

Nevertheless, the financial institution expects proposed U.S. commerce insurance policies to weigh on rising markets and commodity costs globally.