Firmer global economic growth and greater supply discipline should set the stage for higher commodity prices in the months to come, according to a UBS report dated May 8.
* Energy and industrial metals should fare best at the later stage of an economic upswing; precious metals should lag, strategists including Dominic Schnider write
* Crude oil, natural gas and copper are UBS’s “most- preferred” commodities
* Least preferred: gold/silver, cotton and live cattle
* Chinese monetary policy tightening efforts are a risk factor to monitor in 2nd half of 2017
* UBS expects Brent crude to trade at ~$60/bbl this summer
* Gold price may test $1,200/oz or lower over the next 3 months; June Comex futures settled at $1,216.10 Tuesday
*Normalizing US and European monetary policies, inflation’s slow ascent and fading political risks in Europe will stem demand for the metal