Societe Generale backs gold: a safe bet before the US election

Depu CapitalAnalysts said: "While the upcoming growth and inflation data remain strong, it will not be enough to drive a significant increase in yields, especially in theFederal ReserveIn the case of easing policy, the range volatility of the 10-year yield shows that we need to be more patient and wait for a better time to enter the market. "However, Socie ́ te ́ Ge ́ ne ́ rale believes that gold prices are expected to rise as central bank demand creates solid support for the market. Analysts wrote in the latest report:" Although ETF demand has not increased significantly, butGold priceStill hitting new highs. This is partly due to central bank demand, which continues to increase by about 330 tons per quarter. "

"Gold has stood firm in the multi-year range of 2075.dollarA position above/oz, indicating that the uptrend has resumed. It has surpassed the December highs, "the analyst added. The multi-year consolidation breakout indicates greater upside potential. The upward movement is expected to extend to the next target, which is expected to be $2,250/oz and $2,360/oz. The target for the rectangle is at $2,460/oz, while the upper limit of the rectangle area at $2,075/oz is near-term support.

In the broader commodities sector, Socie ́ te ́ Ge ́ ne ́ rale currently sees greater potential for copper for the rest of the year as it expects oil prices to struggle. "The war between Israel and Hamas has been going on for 5 months,crude oilMarkets are starting to underestimate the possibility of a direct conflict between the US and Iran. With the geopolitical factors supporting oil prices eroding and the lack of a clear driver, we are finding it difficult tofuturesFind the value of crude oil outside the curve, "analysts said." We are changing our bearish view on copper - mainly because of the oversupply that was originally scheduled to hit the market in 2024 and is now delayed to 2025. "

Overall, Socie ́ te ́ Ge ́ ne ́ rale remains heavily weighted towards equities, accounting for 47% of its total portfolio. Specifically, the bank's exposure to U.S. equities remains at 30%. Despite reducing its holdings of U.S. government bonds, the bank has generally increased its holdings of corporate bonds as it sees an improvement in lending conditions.