Investing.com — Bank of America’s expects bullish spot returns for aluminum, , and nickel over the next six months, along with gains for industrial metals, silver, , natural gas and agricultural commodities.
But BofA expects negative spot returns for cotton and weak excess returns for zinc, corn, soybean oil and Kansas wheat.
Commodity yields remain under pressure from the contango in several segments including metals, grains and natural gas, although the premium on these declined significantly in November.
Gold and gold also showed high premiums, trading 1.7% and 2.1% higher, respectively, for one-month contracts.
For 2025, BofA expects cyclical and structural tailwinds for the US economy, predicting GDP growth of 2.3% and inflation above 2.5%, which could push final rates higher.
However, the bank expects that the proposed US trade policy will weigh on emerging markets and commodity prices worldwide.
