Deutsche Bank on commodities: Gold preferred in near term, Copper in mid term

Deutsche Bank’s latest Global Mining & Commodities Survey reveals a shift in investor preferences, with gold taking center stage in the short term and copper remaining a favorite for the medium term.

While decarbonization remains a key driver for commodity demand, Deutsche Bank Research notes concerns about a slowing Chinese economy are rising.

They explain that this has led to a decrease in investor conviction for the energy transition’s impact and a growing preference for earlier cycle commodities like iron ore and coal.

Deutsche Bank feels that despite remaining the consensus long-term pick for copper, investors are wary of potential slowdowns in electric vehicle and renewable energy adoption, and the threat of substitution. As a result, they state that gold has emerged as the preferred metal for the near future.

The survey also highlights a growing belief that supply constraints may be easing, with 20% of respondents anticipating sufficient supply to meet future decarbonization needs. Additionally, 73% are said to expect an increase in major project approvals for metals like copper in the next year.

Deutsche Bank says ESG remains a focus, with decarbonization efforts driving a more positive perception of the mining sector for some investors. However, local environmental concerns persist, with water stress, community relations, and carbon emissions gaining importance.

The report concludes with a prediction of continued M&A activity, with Anglo American (JO:AGLJ) and Teck Resources (NYSE:TECK) seen as potential takeover targets in the next three years.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Social Media Hype and Market Volatility Explained for Traders

    • June 21, 2025
    Social Media Hype and Market Volatility Explained for Traders

    How to Trade Forex During Unexpected News Without Panicking?

    • June 21, 2025
    How to Trade Forex During Unexpected News Without Panicking?

    B2BROKER Offers New Website Development Service in Partnership with Website Studio Agency

    • June 21, 2025
    B2BROKER Offers New Website Development Service in Partnership with Website Studio Agency

    Weekly Review: Dubai Outpays Cyprus in Top FX Executive Salaries; iFX EXPO International 2025 Highlights

    • June 21, 2025
    Weekly Review: Dubai Outpays Cyprus in Top FX Executive Salaries; iFX EXPO International 2025 Highlights

    What Moves the Dollar in 2025?

    • June 20, 2025
    What Moves the Dollar in 2025?

    What Is a Currency Crisis? 5 Examples Every Trader Should Know

    • June 20, 2025
    What Is a Currency Crisis? 5 Examples Every Trader Should Know