CIO View Commodities June Update

The UBS June update highlights that commodities are performing solidly, particularly energy, due to the prolonged restriction of flows through the Strait of Hormuz. Active management is recommended to hedge against inflation and supply shocks across energy, metals, and agricultural sectors.

Key Takeaways

• 1.Restricted energy flows through the Strait of Hormuz are significantly depleting global oil inventories and driving prices upward.
• 2.Industrial metal prices are showing V-shaped recovery resilience, supported by electrification trends and high production costs.
• 3.Gold serves as a critical geopolitical hedge against the Iran War and potential inflation, despite headwinds from central bank policy hikes.

Table of Contents

• CIO View: Commodities
• Appendix
• Risk information
• Generic investment research – Risk information

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