Investing.com — Bank of America’s expects bullish spot returns for aluminum, , and nickel over the next six months, alongside gains in 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 returns remain pressured by contango across several segments, including metals, grains, and natural gas, though the premium on eased significantly in November.
Gold and also showed stretched premiums, trading 1.7% and 2.1% higher, respectively, for one-month contracts.
For 2025, BofA views cyclical and structural tailwinds for the U.S. economy, forecasting 2.3% GDP growth and inflation above 2.5%, which could push terminal interest rates higher.
However, the bank expects proposed U.S. trade policies to weigh on emerging markets and commodity prices globally.