Stubbornly resilient lithium supply remains hurdle to recovery
Lithium prices have plunged since late 2022 on oversupply and slower-than-expected growth in electric vehicle demand.
Gold was steady as traders weighed risks to global trade under the incoming US administration, with President-elect Donald Trump denying a report he might moderate plans for across-the-board tariffs.
Bullion held near $2,634 an ounce, after ending slightly lower in the previous two sessions. The uncertainty about the hotly anticipated policy moves helped lift 10-year Treasuries yields to the highest level since May on Monday, while the dollar fell. That was mixed for gold, which typically faces a headwind from higher yields, but support from a weaker US currency.
Bullion surged 27% last year in a record-breaking run that was propelled in part by US monetary easing, though the rally lost momentum after Trump’s US election victory buoyed the dollar. Bulls are now facing the prospect of less impressive gains this year, with Goldman Sachs Group Inc. pushing back a target for gold hitting $3,000 to mid-2026 on expectations for fewer Federal Reserve cuts.
Against that backdrop, hedge funds’ bullish wagers fell to the lowest in six months, Commodity Futures Trading Commission data showed.
Spot gold eased 0.1% to $2,633.61 an ounce at 8:23 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, after a 0.6% loss in the previous session. Silver, palladium and platinum were steady.
Traders are looking ahead to Friday’s US jobs report, which is expected to show a moderating yet still-healthy labor market. The data are unlikely to alter the view that the Fed will take a more cautious approach to cutting rates in 2025 amid renewed concerns about inflation. Minutes of the Fed’s December meeting are also due this week.
(By Sybilla Gross)
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