SUPERNEWS

Macro

Gold, Oil, and Cocoa Surge: Key Charts to Watch

Gold hits record highs as Newmont leads production surge; Pipeline expansion and commodity volatility mark global market shifts.

By Max Weldon

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4/28, 17:24 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
BHP Group Limited
Barrick Gold Corporation
GOLD
Newmont Corporation
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Key Takeaway

  • Newmont Corp. leads gold production, targeting 6.93 million ounces, as gold prices rally to record levels.
  • Trans Mountain pipeline expansion to start, boosting Canada's oil export capacity by 590,000 barrels a day and potentially shifting global oil flows.
  • Cocoa price volatility hits record highs with potential to reach $15,000 a metric ton amid extreme market swings since the 1970s.

Gold Rally Continues

Gold prices have surged to record levels, prompting the world's largest producers to aim for increased output. Newmont Corp., the top gold miner, plans to produce 6.93 million ounces this year, following its acquisition of Newcrest Mining Ltd. for $15 billion. This move solidifies Newmont's position at the pinnacle of gold production. Barrick Gold Corp., another major player, is set to reveal its production plans, highlighting the industry's bullish outlook on gold amidst its relentless rally.

Pipeline Expansion Redefines Oil Flows

The Trans Mountain pipeline expansion in Canada is poised to start commercial operations, significantly impacting global oil distribution. This expansion will transport an additional 590,000 barrels of oil per day from Alberta to the Pacific Coast, marking Canada's enhanced role in the global energy market. The project, acquired by Prime Minister Justin Trudeau's government, aims to redirect oil flows from California to China, showcasing a strategic shift in energy transportation.

Cocoa and Copper Markets Face Volatility and Demand Surge

Cocoa prices have experienced unprecedented volatility, with prices reaching almost $12,000 a metric ton. This surge, the most extreme since the 1970s, has led to a decrease in market liquidity and increased price swings. Meanwhile, copper demand is skyrocketing, driven by the needs of electric vehicles (EVs), grid infrastructure, and data centers. BHP's $39 billion bid for Anglo American Plc underscores the urgent need for increased copper production to meet this demand. However, the industry faces challenges in securing the necessary investments, with over $150 billion needed by 2032 to bridge the supply gap.

Energy Storage and Diesel Market Dynamics

The global energy storage market is set to expand rapidly, with Asia Pacific leading the charge. This growth is fueled by government mandates and subsidies, supporting the transition away from fossil fuels. On the other hand, the diesel market is experiencing a downturn, with consumption in the US near a seasonal low. This softness in the diesel market could influence crude prices if it persists, highlighting the interconnectedness of global energy markets.