In an outlook note, TD Securities said it expects that capital flows into the sector and prices will be subdued into 2023, as demand growth for crude oil and industrial metals weakens amid increasingly restrictive monetary policy and a growing risk of a global recession.
“Crude oil prices are projected to move higher into 2023, with base metal prices expected to post relatively modest cyclical declines in the early part of the year, followed by a robust recovery.”
TD said it recommends shorting gold, silver and platinum into early 2023.
The outlook for base metals is still clouded by the expectation of global growth slowing, and some China-specific challenges too.
I”China’s property crisis has yet to show signs of bottoming, creating a major challenge for base metal bulls. The average delay in home completions has recently reached 14 months, destroying homebuyers’ confidence in the completion of new projects as highlighted by the steep drop in new home sales.”
If 15 planned coal mining projects in Australia enter operation they would boost the country’s methane emissions from the dirtiest fossil fuel by nearly a fifth, according to an analysis from energy think tank Ember.
Australia’s coal mines already cause more planetary warming in a typical year than emissions from all the country’s cars.
The new projects were previously approved but are facing fresh scrutiny under Prime Minister Anthony Albanese’s Labor coalition, which has joined the Global Methane Pledge that aims to cut global emissions of the potent greenhouse gas 30 per cent by 2030.