Lower-for-longer interest rates, global trade tensions, heightened geopolitical rifts coupled with record central bank and investor buying activity, are all supportive of gold in the medium term. On the flip side, the outlook for oil looks more bearish with strong supply growth.
2020 US Elections’ Implications for Energy Policies
By Jessica Tan
As the US Presidential Election season progresses, energy politics matter given its weight in the US economy. Citi analysts anticipate three possible scenarios following the US election.
Commodities: Flow-on Effects from Oil Supply Shock
By Jessica Tan
3Q19 has proven broadly negative for industrial commodities, though precious metals have prospered from widespread macro uncertainty. Gold inflows look set to continue in 4Q19.
Global oil prices surge more than 10% at the open of Asia's trading on Monday after a drone strike on a Saudi Arabian oil facility affected about 5% of global supplies. Geopolitical events tend to see exaggerated initial impact in markets. With this, Citi analysts call for investors to see through any near-term market dislocations and remain carefully balanced in their asset allocation.
Commodities: Bullish Gold Outlook; Oil Enters a New Era
By Jessica Tan
Citi’s Global Investment Committee has increased allocation to gold as a portfolio risk hedge. Meanwhile, the US looks well on its way to becoming a net oil exporter.
