MUFG: Gold, oil, and pure gasoline; three high commodities trades for 2025

MUFG highlights three commodities trades for 2025, emphasizing a bullish view on gold, near-term upside for oil with medium-term draw back, and bearish prospects for long-dated pure gasoline costs.

Key Trades:

1. Gold (Lengthy Spot):

   • Rationale:
     • Anticipated US Fed fee cuts.
     • Elevated demand pushed by US coverage uncertainty and geopolitical tensions.
   • Outlook:
     • Sturdy demand from monetary establishments, traders, and central banks makes gold a beautiful entry level.

2. Crude Oil (Brent Crude Spreads):

   • Technique:
     • Lengthy Could/June 2025 spreads, brief Could/June 2026 spreads.
   • Rationale:
     • Close to-term upside attributable to low valuation and Iranian provide dangers.
     • Medium-term draw back attributable to elevated spare capability and dangers of tariff escalation.

3. Pure Fuel (Quick 2026 European TTF and US Henry Hub):

   • Rationale:
     • Anticipation of a worldwide LNG provide surge.
     • Costs prone to fall under lignite economics to handle storage ranges.

Conclusion:

MUFG’s high trades replicate strategic positioning for key dynamics in 2025, with bullish sentiment on gold, tactical oil spreads, and bearish bets on long-dated pure gasoline costs.

For financial institution commerce concepts, try eFX Plus. For a restricted time, get a 7 day free trial, fundamental for $79 per thirty days and premium at $109 per thirty days. Get it right here.

This text was written by Adam Button at www.ubaidahsan.com.



Source link