Commodities

ETF Securities has adjusted its fair value target for gold to $1400, amid a surge in appetite for the precious metal.

It has taken a long time to Saudi Arabia to embark on a reform wave, but it seems that after eight decades of oil dependency, and under the current context of sustained low crude oil prices that pushed Saudi Arabia into a budget deficit of nearly $100bn last year (15% of GDP), the time has come for the kingdom to think of a post-oil era.

Roberto Cominotto, Investment Director for energy equities at GAM, is convinced that a sustainable turning point in the oil market is within reach, thanks to the decline in US production.

Although, panic has faded, growth outlook is still uncertain. Patrick Moonen, Principal Strategist Multi Asset at NN IP and Valentijn van Nieuwenhuijzen Head of Multi Asset at NN IP, have downgraded equities to neutral again.

The first few days of the year were particularly challenging for capital markets. Further incertitude regarding the strength of the US cycle and the possibility that the Chinese economy is weathering a heavy depression drove risky assets lower, bucking the traditional early-year trend.