DBS Bank: Commodity Volatility May Persist, But Opportunities Still Exist

On December 30, DBS Bank's Chief Investment Office stated that due to tariff issues stemming from Trump's re-election, commodities will continue to fluctuate in the short term. Analyst Goh Jun Yong wrote in a report that any potential benefits from Trump's pro-growth policies will take time to materialize. In this context, DBS Bank's Chief Investment Officer advises investors to be selective, noting that there may be opportunities in precious metals and some soft commodities. The bank maintains its 12-month gold price target at $2835 per ounce. Goh stated that, as the fiscal deficit under Trump's administration in the U.S. seems set to grow, the structural reasons for gold remain compelling. In agriculture, as of mid-November this year, cocoa and coffee prices have risen by 123% and 44% respectively; amid supply challenges and resilient global demand, these commodities are expected to continue outperforming the market.