Sell oil rallies, wait to buy near-term dip in gold: Citi

Citi analysts recommend caution in oil and gold markets following Donald Trump’s election victory and a Republican-controlled Congress. Oil prices, down 1-5% along with other commodities, face a bearish outlook due to anticipated increases in U.S. supply and eased regulations, with Brent crude expected to average $60 per barrel in 2025. Despite geopolitical risks, Trump’s policies on energy costs and sanctions on Iran are unlikely to significantly boost oil prices.
For gold, Citi suggests a “buy-the-dip” strategy, predicting a rise to $3,000 per ounce within six months. Near-term weakness in gold is attributed to U.S. equity rallies and machine-driven selling, but structural factors like global de-dollarization and high interest rates support a long-term bullish trend. The bank also notes mixed prospects for other commodities, with neutral views on base metals and bearish expectations for U.S. soybeans and corn due to trade tensions with China.