Barratt said oil prices will continue to be driven by developments involving the US and Iran. He expects crude to remain supported until there is greater clarity on tanker movements through the Strait of Hormuz, while precious metals could continue to consolidate until the US interest rate outlook becomes clearer.
Barratt said conflicting statements from the US and Iran have made it difficult to determine whether shipping through the Strait of Hormuz has been affected. While the US maintains that shipping continues, Iran has suggested otherwise.
According to Barratt, oil markets are watching tanker movements closely because any disruption to crude exports could tighten global supplies. “We need tankers to go through. We need Iran to start pumping oil and getting that to the market, and that’s what we’re not seeing,” he said.
Barratt said he continues to favour both gold
and silver, although silver remains his preferred investment.
He said gold is currently in a consolidation phase as investors assess the outlook for US interest rates. Higher interest rates generally reduce the appeal of non-yielding assets such as gold. However, Barratt expects sentiment to improve once the US Federal Reserve shifts towards monetary easing.
Silver, meanwhile, continues to benefit from structural demand, particularly from China.
Barratt said Chinese imports of silver remain strong due to demand from electric vehicles and solar panel manufacturing. “The China EV green energy space is still there, regardless of the dip we’re currently seeing,” he said.
He added that silver has the potential to retest its previous highs if macroeconomic conditions remain supportive and geopolitical risks persist.
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