Latest news with #HengKoonHow
Wall Street Journal
11-08-2025
- Business
- Wall Street Journal
Gold Edges Lower Amid Mixed Signals on Possible U.S. Tariffs
2354 GMT — Gold edges lower in the early Asian session as traders assess mixed signals on the likelihood of U.S. tariffs on the precious metal. There was a supposed change by U.S. customs authorities over the classification for a kilogram bar and a 100-oz bar, which would lead to them being subjected to import tariffs, says Heng Koon How of UOB's Global Economics & Markets Research. However, 'the White House was said to be issuing a clarification soon on this matter, but investor nerves may have been frayed amidst the constant fear of import tariffs on gold,' the head of Markets Strategy says in a research note. Spot gold is down 0.2% at $3,392.87/oz. (
New Straits Times
10-08-2025
- Business
- New Straits Times
UOB keeps positive gold outlook despite US tariff confusion
KUALA LUMPUR: United Overseas Bank (UOB) has maintained its bullish gold price forecast despite market jitters over a potential change in United States import tariffs on gold bullion bars. Its head of markets strategy Heng Koon How said uncertainty arose after the US Customs and Border Protection updated the Harmonised System code for importing gold kilo bars and 100-ounce bars. These bars, widely used in Comex futures settlement, could potentially no longer be tariff-exempt under the new classification. "There was much confusion and concern over the supposed change, which could result in these bullion bars being subjected to import tariffs," Heng said in a note. He added that given the large amount of gold the US imports from Switzerland, the move could be linked to ongoing trade tensions between the two countries. Industry players have warned the measure could tighten bullion supply and inject volatility into the US gold futures market. UOB also noted concerns that supply disruptions might even threaten the viability of Comex gold futures contracts. Swiss Association of Manufacturers and Traders in Precious Metals president Christoph Wild said, "With a tariff of 39 per cent, exports of gold bars will definitely be stopped to the US." Despite the market anxiety, Heng said UOB's positive view on gold remains unchanged, supported by strong central bank demand, a weaker US dollar and expectations of US Federal Reserve rate cuts. "We keep to our gold forecast of US$3,500 per ounce by the fourth quarter of 2025 and US$3,700 per ounce by the second quarter of 2026," Heng said, adding that spot gold is currently just under US$3,400 per ounce. He added that the upcoming resumption of the Fed's rate-cutting cycle at the September Federal Open Market Committee meeting would reinforce the weak dollar backdrop, which is positive for gold prices. While the White House is expected to issue a clarification soon, Heng cautioned that "nerves are frayed and the bullion market will likely stay tight with investors remaining wary of further tariff risk."
CNA
03-07-2025
- Business
- CNA
Wealth Wise - Global economy: Rougher days ahead?
Could we be in for a bumpier roller coaster, as the world braces for possible widespread slowdown in the global economy? Lance Alexander learns more from Heng Koon How, Head of Markets Strategy, UOB.
CNA
23-06-2025
- Business
- CNA
CNA938 Rewind - Stock take today: US strikes on Iran, crude oil forecast
CNA938 Rewind On the daily markets analysis on Open For Business, Andrea Heng and Susan Ng speak with Heng Koon How, Head of Markets Strategy, Global Economics and Markets Research, UOB.
New Straits Times
16-06-2025
- Business
- New Straits Times
Oil price rally may be short-lived: Analyst
KUALA LUMPUR: The rally in crude oil prices, which saw Brent surge to US$75 per barrel following the escalating Israel-Iran conflict, may be short-lived, according to UOB. Its head of markets strategy, Heng Koon How, said the rally, which has recovered all losses since April's "Liberation Day" tariff shock, faces ample global supply buffers and growing risks to global demand. "The jump in Brent crude is driven by geopolitical risk, but it's still too early to call for a sustained rally. We need to see how Iran retaliates and how Saudi Arabia and OPEC+ respond," Heng said in a research note today. Brent futures climbed nearly 10 per cent last Friday, briefly touching US$78.50 before settling at US$75. This reversed a two-month slide triggered by US tariff moves and Saudi-led supply resumptions. Heng noted that past conflicts between Israel and Iran in 2024 failed to push prices higher for long, due to rapid de-escalation and resilient global supply. "A key difference now is the intensity. This latest round has already seen significant missile exchanges, and there is real concern about regional infrastructure being targeted," he said. He added a worst-case scenario would involve Iran attacking US military bases or oil facilities in the Middle East, which could disrupt flows through the Strait of Hormuz, a vital global shipping lane. In such a case, oil prices could spike above US$100 per barrel. However, the supply side remains well-positioned to cushion potential shocks. "The US now produces more than 13 million barrels per day (bpd), while Saudi Arabia has spare capacity to ramp up output by two to three million bpd if needed. "OPEC+ has already pledged to restore two-thirds of their pandemic-era cuts by year-end. They have both the capacity and the motivation to calm markets if prices overheat," Heng said. UOB maintained its Brent crude forecast at US$65 for the third quarter and US$60 for the fourth quarter, while also pointing to another growing concern over weakening demand. "While the focus is currently on supply disruption, the demand picture is deteriorating. The World Bank has already downgraded global growth to 2.3 per cent, citing trade uncertainties from the Trump administration's policies," Heng said. With the global economy potentially slowing into 2026, energy consumption may taper, putting downward pressure on prices. "For now, we are watching the two key variables, namely Iran's retaliation and OPEC+'s reaction. Until there is more clarity, we see no reason to revise our forecast," he added.
