UBS's Chief Investment Office expects Brent crude to reach $110 a barrel by year-end, arguing that limited supply buffers leave the market vulnerable. The bank also reiterated its preference for copper and suggested adding gold on pullbacks.
UBS's Chief Investment Office expects Brent crude prices to reach $110 a barrel by year-end, saying limited supply buffers leave the market vulnerable despite recent price swings.
Brent rebounds after Hormuz tanker explosions
Brent settled at $95.84 a barrel on Friday, up 0.02% from the previous session. Prices traded between $89.16 and $97.13 this week, rebounding after Iran denied talks and new tanker explosions hit the Strait of Hormuz.
Gold settles at $3,886.30 after midweek declines
Gold futures settled at $3,886.30 an ounce on Friday, up 0.03% from the previous session, after falling 2.88% on Thursday and 0.74% on Wednesday. UBS said a stronger-than-expected October U.S. inflation reading and hawkish comments from several Federal Reserve officials shifted market pricing back towards more interest rate hikes, lifting Treasury yields and the dollar.
Separately, central bank gold purchases rose 42% year over year to 321 metric tons in the third quarter, according to World Gold Council data cited by UBS. Exchange-traded fund inflows of 211 metric tons lifted global holdings to a record above 4,250 metric tons. UBS suggested investors with insufficient gold exposure consider adding to holdings on pullbacks below $4,000 an ounce.
Copper stays UBS's preferred industrial metal
Copper remains UBS's preferred industrial metal, supported by investment in power grids, data centres, electrification and AI infrastructure. September output at two key Chilean copper operations fell 21% and 14% year over year.
Meanwhile, stocks monitored by the Shanghai Futures Exchange dropped more than 24% in the latest weekly data to their lowest since January 2024.
Source: Investing.com
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