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Annual & Mid-year Outlook | Commodities

Gold Continues Its Lead

Key Takeaways

  • Following a volatile 2Q 2020, crude oil prices may be supported by demand improvements and lower supply. Citi analysts’ average Brent and WTI prices for 2020 are at US$42/bbl and US$38/bbl respectively.
  • Gold continues to lead all commodities in year-to-date performance, proving to be an outperformer as a safe haven asset and acts as a risk hedge in portfolios. Gold prices are expected to continue to trend up in the medium-term.
  • Downside risks to growth and rising US-China tensions may see base metal prices drift lower in coming months, while weak demand may also see iron ore prices trend lower over the longer run.