Stories
Brent Crude May Surge to $108 on Hormuz Risks While Gold Faces Near-Term Pressure
- •Brent crude is projected to reach $107 to $108 per barrel in the near term due to renewed supply disruption concerns near the Strait of Hormuz.
- •Kunal Shah of Nirmal Bang Securities notes that ongoing supply constraints and the upcoming winter season will keep oil prices elevated.
- •Gold and silver are expected to face short-term selling pressure as rising global bond yields and US Treasury yields tighten market liquidity.
- •Gold could potentially dip towards $4,000 an ounce and silver towards $57.50 an ounce if bond yields continue to climb.
- •Despite near-term headwinds, Shah remains bullish on precious metals long-term, forecasting gold to hit $4,700-4,800 over the next eight to ten months.
Key Questions Answered
Kunal Shah, VP-Head of Commodities Research at Nirmal Bang Securities, stated that Brent crude could rise to $107-108 a barrel in the near term due to fresh attacks around the Strait of Hormuz renewing supply disruption concerns. He expects ongoing supply constraints and the upcoming winter season to keep oil prices elevated.
Shah noted that gold and silver are currently facing near-term pressure as global bond yields, including US Treasury yields, reach multi-year highs and tighten market liquidity. If yields continue to climb, gold could fall toward $4,000 an ounce and silver toward $57.50 an ounce in the near term.
Despite near-term downward pressure, Shah remains bullish on precious metals over the longer term, expecting gold to reach $4,700-4,800 an ounce and silver to rise to $80-85 an ounce over the next eight to ten months. He views any price drops as a strong buying opportunity to accumulate assets.
