With market volatility persisting, gold prices have skyrocketed past US$2,900 per ounce (S$3,926) as of February 12. Investors view gold as a safe-haven asset, particularly amid renewed fears of U.S. tariffs and slowing economic growth.

Julius Baer’s Carsten Menke highlights that emerging-market central banks have resumed gold purchases, driving up demand.

“Short-term traders and speculators remain bullish, while Western investors appear to be missing out on the rally. Emerging markets’ central banks are driving demand, possibly as a hedge against U.S. dollar dependence and geopolitical tensions,” he notes.

Menke points to China’s unreported gold purchases as a key factor behind the price surge, estimating that China added over 300 tonnes to its reserves in 2024, but only 44 tonnes were officially disclosed.

Commodity Outlook: Copper Poised for Growth
VP Bank’s Felix Brill remains bullish on gold but also sees opportunities in other commodities, particularly copper, given its crucial role in the AI-driven economy.

“Copper is vital for the energy transition and AI boom, as all electronic devices require it. The rise of electric vehicles (EVs) is another factor, with EVs consuming twice as much copper as traditional combustion engines,” Brill explains.

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