Glitter up: Which ASX shares are commodities prices shining on in 2024?

Commodity prices have surged in 2024 driven by safe-haven demands and green technology needs.

| More on:
A man in a business suit looks at a gold phone with his head in an exploding cloud of gold dust.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Commodities prices for precious metals are on the rise in 2024. Strong demand for safe-haven assets amid economic uncertainty has seen the gold price top US$2400 an ounce.

Copper has also performed well, with prices elevated due to strong demand from renewable energy sectors. 

Economic forces drive gold higher   

This is welcome news for ASX gold mining stocks such as Northern Star Resources Ltd (ASX: NST), Evolution Mining Ltd (ASX: EVN), and Perseus Mining Ltd (ASX: PRU). They have seen decent share price rises this year to date, with Northern Star's shares up 11.7% and Perseus trading 21.2% higher. Evolution is up just 0.63% since January but is enjoying a 13% increase over the past 12 months.

Analysts maintain a bullish outlook for gold as inflationary pressures and geopolitical tensions drive investors towards the precious metal. 

Sustained interest in gold as a hedge against inflation and currency devaluation supports a higher price trajectory. Growing market demand in sectors like technology and jewellery, especially from emerging markets, is also contributing.

The rising gold price translates to increased revenues for gold mining shares, boosting financial performance. Higher gold prices can also make mining projects that were previously non-viable become profitable, leading to operational expansion.

Northern Star's KCGM Mill expansion is on track, while Evolution Mining advises that new drilling results have provided attractive propositions for future production. 

Recent uptrends in copper commodities prices

Higher copper prices can be attributed to a combination of supply constraints and robust demand driven by key sectors. Production issues, including the closure of significant mines and reduced output targets by major producers, have tightened supply.

On the demand side, copper is experiencing significant growth due to its essential role in renewable energy technologies and electric vehicles. ASX copper miners are the beneficiaries of this trend. Companies like Sandfire Resources Ltd (ASX: SFR) and Aeris Resources Ltd (ASX: AIS) have seen a marked rise in share prices since the start of the year, up 24.3% and 8.33%, respectively. 

Cleaner energy sources, including solar and wind power, require substantial amounts of copper for their infrastructure, as does electric vehicle (EV) production.

Copper is critical to these applications due to its excellent conductivity and durability. Additionally, economic recovery and industrial expansion in China, which consumes nearly half of the world's copper, has amplified demand. 

Foolish takeaway

Rising trends in precious metal commodity prices underscore a robust period for investors and mining companies alike. Gold continues to glitter against the backdrop of inflationary fears and geopolitical uncertainties. Meanwhile, copper's crucial role in the green energy transition paints a bullish picture, fuelled by escalating global demands for sustainable technologies. 

These dynamics enhance the financial outlook for commodity companies like Northern Star Resources, Evolution Mining, and Sandfire Resources. As commodity prices carve a path to profitability, I think the outlook for precious metal mining stocks shines bright.

Motley Fool contributor Katherine O'Brien has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Man with rocket wings which have flames coming out of them.
Materials Shares

Bell Potter says this speculative ASX stock could rise 200%+

This stock could more than triple in value according to the broker. But it is only suitable for high risk…

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Share Gainers

Guess which ASX lithium share just leapt 13% on major financing news!

Investors are bidding up the ASX lithium share on the back of major financing news.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Materials Shares

'Tip of the iceberg': Why this ASX lithium stock has exploded 200% in a week

What is getting investors excited this week? Let's find out.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Market News

Patriot Battery Metals share price rockets 11% on new lithium drilling results

The ASX lithium stock has more than recovered its share price losses from yesterday.

Read more »

A female miner wearing a high vis vest and hard hard smiles and holds a clipboard while inspecting a mine site with a colleague.
Materials Shares

How much passive income would I make from 300 BHP shares?

Is this mining giant a good source of income? Let's see what analysts are predicting.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Could Liontown shares roar 30%+ higher?

Is this beaten-down lithium developer about to roar higher? Let's see what Bell Potter is saying.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Materials Shares

Guess which ASX lithium stock dived 9% after parting ways with Albemarle

A promising agreement has been terminated but management remains confident.

Read more »

Man smiling at a laptop because of a rising share price.
Materials Shares

Novonix share price rockets on new Volkswagen deal

There's some big ASX news out of Novonix today.

Read more »