Economists at Westpac expect the yellow metal to decline towards $1,675/oz while Brent Crude Oil is set to suffer a deeper fall to the $70/bbl level.  

Crude and base metal prices to hold around current levels at least to midyear

“Crude and base metals have a slightly different profile to the bulks as we see significant a lift in supply for bulk commodities in early 2022 leading to a quicker correction in iron ore and coal prices while we expect crude and base metal prices to hold around current levels at least to midyear. For iron ore, this will mean a correction from $140/t to$75/t, thermal coal to ease from$234/t to $125/t and met coal to moderate from$398/t to$205/t.”

“The base metals index is forecast to correct from 240 to 204, crude oil (Brent) to fall from $90/bbl to $70/bbl while gold will fall by less from $1,797/oz to $1,675/oz.”