UBS proceed to see gold and oil as hedges towards macroeconomic, geopolitical threat

UBS analysts proceed to spotlight gold and oil as strategic hedges towards the prevailing macroeconomic and geopolitical surroundings, forecasting notable worth will increase for each commodities within the coming years.

The financial institution initiatives gold costs to succeed in $2,900 per ounce by September 2025, pushed by a confluence of things, together with expectations of decrease rates of interest, uncertainty surrounding President-elect Donald Trump’s coverage agenda, and sturdy central financial institution purchases globally.

• “Gold’s position as a safe-haven asset stays compelling given these dynamics,” UBS famous.

On the oil entrance, UBS anticipates Brent crude to rise to $80 per barrel, citing provide constraints and a possible underestimation of demand progress. Moreover, the financial institution flagged potential disruptions in crude exports and manufacturing from Iran and Venezuela, notably if geopolitical pressures intensify underneath Trump’s second time period.

• “Tighter market circumstances might amplify upward strain on oil costs,” UBS added.

These forecasts underscore the financial institution’s view that each commodities provide resilience within the face of heightened financial and geopolitical uncertainty.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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