UBS bullish commodities – maintain year-end Brent target at USD 87 – bullish gold also

UBS are projecting a recovery for commodity prices, including oil, gold and more.

In a note analysts say that concerns over sluggish Chinese demand have weighed on commodity prices in recent weeks. But prices will recover due to “solid demand and limited supply”.

• lower crude exports could help tighten the oil market
• copper prices have held up
• gold has more room to rally

On gold, UBS cite:

• drivers for the rally remain in place, including strong central bank buying, ongoing geopolitical uncertainty, and the likely Federal Reserve move to cut interest rates in the coming months

This article was written by Eamonn Sheridan at www.forexlive.com.