Logam Mulia and Base Metals Rise, UBS Analyst Explains the Method of Calculating Equilibrium Price

Amid rising macroeconomic uncertainty, the precious metals and base metals markets are attracting the attention of global investors. To determine the equilibrium price in this volatile market, understanding the dynamics of supply and demand is key for investment decision-makers.

Diversified Portfolio Demand Drives Gold Past $5,000

According to Odaily, UBS precious metals analyst Joni Teves highlights that investors’ desire to have a more diversified portfolio is a primary factor behind the bullish momentum in gold prices. Institutional investors, retail investors, and central banks worldwide are actively increasing their gold allocations as a hedge against global economic uncertainty.

Teves projects that gold will continue to maintain its upward momentum into the first half of this year. If concerns about the Federal Reserve’s independence persist, gold price projections could reach levels of $5,000 per ounce, surpassing previous historical levels.

Supply-Demand Dynamics and Silver’s Challenge to $100 per Ounce

Silver is expected to gain momentum from gold’s rise, while supply and demand balance in the silver market becomes increasingly tight. The narrowing margin between supply and demand creates an ideal condition for silver to challenge the psychological level of $100 per ounce throughout this year. Investors aiming to calculate the silver equilibrium price should consider its historical relationship with gold as well as industrial demand dynamics.

Copper and Energy Transition: Equilibrium Calculations in a New Era

The copper market exhibits different dynamics, driven by substantial demand from the global energy transition sector. Supply-demand balance in this sector is tightening, exerting upward pressure on prices. To calculate the copper equilibrium price, investors need to monitor investment momentum in renewable energy infrastructure and electric vehicles.

Overall, the precious metals market conditions indicate that global investors continue to seek defensive assets amid volatility. The ability to accurately calculate equilibrium prices through supply-demand analysis and macroeconomic factors will be a competitive advantage in this metals investment strategy.