MUFG: Gold, oil, and natural gas; 3 top commodities trades for 2025 ...Middle East

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MUFG: Gold, oil, and natural gas; 3 top commodities trades for 2025

Key Trades:

Gold (Long Spot):

    Rationale:Anticipated US Fed rate cuts.Increased demand driven by US policy uncertainty and geopolitical tensions.Outlook:Strong demand from financial institutions, investors, and central banks makes gold an attractive entry point.

    Crude Oil (Brent Crude Spreads):

    Strategy:Long May/June 2025 spreads, short May/June 2026 spreads.Rationale:Near-term upside due to low valuation and Iranian supply risks.Medium-term downside due to increased spare capacity and risks of tariff escalation.

    Natural Gas (Short 2026 European TTF and US Henry Hub):

    Rationale:Anticipation of a global LNG supply surge.Prices likely to fall below lignite economics to manage storage levels.

    Conclusion:

    MUFG’s top trades reflect strategic positioning for key dynamics in 2025, with bullish sentiment on gold, tactical oil spreads, and bearish bets on long-dated natural gas prices.

    For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.

    This article was written by Adam Button at www.forexlive.com.

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