Broker Name: DBS Bank Ltd
Date of Report: 10 March 2026
Excerpt from DBS Bank Ltd report.
- Escalating geopolitical tensions in the Middle East and ongoing macro uncertainty have reintroduced volatility to global markets, making gold attractive as a hedge and oil a volatility play.
- DBS highlights gold’s role as a safe-haven asset, supported by strong investment demand and central bank purchases, and upgrades its gold price forecasts to USD 5,300/oz for 1H26, USD 6,250/oz for 2H26, and a long-term target of USD 8,060/oz by 2030.
- Oil prices are highly sensitive to disruptions in the Gulf region, especially the Strait of Hormuz, with even short-term supply shocks posing significant risks; DBS raises Brent crude forecasts to USD 75–80/bbl for 2026 and USD 65–70/bbl for 2027.
- ETF Picks: GLD US (SPDR Gold Shares) for gold exposure; XLE US (Energy Select Sector SPDR Fund) for large-cap oil majors; XOP US (SPDR S&P Oil & Gas Exploration & Production ETF) for higher sensitivity to oil price movements and volatility.
- Recent attacks on vital oil and gas infrastructure in the region have caused both temporary and ongoing production disruptions, further tightening energy markets.
- DBS also provides performance data and risk/return characteristics for the recommended ETFs, emphasizing their roles in portfolio diversification during periods of market stress.
Report Summary:
- Geopolitical tensions and trade frictions are driving volatility, making gold an increasingly attractive hedge and oil a volatility play.
- DBS raises forecasts for both gold and oil, highlighting ETFs GLD, XLE, and XOP for exposure to these themes.
Above is an excerpt from a report by DBS Bank Ltd. Clients of DBS Bank Ltd can be the first to access the full report from the DBS website: https://www.dbs.com
