The S&P ASX 200 has risen by about 4% and 10% respectively on a year-to-date basis and from one year ago respectively. Although there are asymmetries between stocks and sectors, this article outlines three things to watch in the ASX over the coming weeks. 

Three things to watch on the ASX in the Coming Week

• Higher Oil Prices Could Boost Energy Shares
• Gold-Related Shares Could See a Boost 
• Goldman is Neutral on Liontown Resources Ltd (ASX: LTR)

Oil Prices Storm Higher

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could perform well in the coming weeks if oil prices hold up. A report from Reuters cautions that a slowing U.S. economy could cap gains, but geopolitical uncertainty in the Middle East and robust growth in emerging markets could support demand. So far, oil prices have gained 16.5%, with WTI at US$83.71 a barrel and  Brent crude around US$87.16 a barrel. 

A large drop in US crude and gasoline inventories boosted oil prices and this could have a supportive impact on energy shares in the ASX. Furthermore, as central banks lower interest rates, this could support domestic demand, pushing up oil prices and reinforcing the positive price trends for energy stocks. 

Gold Price Jumps

The coming sessions could be a good one for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) as gold prices appear to be picking up some steam. According to some estimates, Gold prices are expected to average $1900 per ounce in 2024, which could support such shares over the medium term and allow them to enjoy solid returns. 

However, CNBC data shows that spot gold prices are by 1.3% to US$2,364.2 an ounce as soft economic data out of the US is increasing the chances of rate cuts by the Federal Reserve, causing investors to consider higher-yielding assets. 

Liontown Rated Neutral

Goldman Sachs has given Liontown Resources Ltd (ASX: LTR) a neutral rating by analysts in response to the lithium developer's funding update. Although Goldman has cut its price target rating from %1.35 to $1.15, it is nonetheless a good buy at present. LTR's ROE (Return on Equity) has increased over the last three years from -74% to -7%, and it appears to be approaching profitability. LTR currently has negative debt and more cash i.e. short-term investments (538m AUD) than debt (315m AUD). 

The coming sessions will be driven by a mix of macro factors and company-specific factors that will determine the performance of stocks in the coming weeks. While this list is not exhaustive it provides a rationale for why investors should watch these stocks closely as changes in commodity prices could signal better performance over the medium term.