Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, said: “We expect commodity prices to rise, and the total return on the commodity index is expected to be around 10% over the next 6 to 12 months.”

While UBS still favors oil, it also suggests “taking a more proactive approach to investing in this asset class, which may help avoid some execution and passive index risks while still providing compelling risk-adjusted returns.”

UBS believes that commodities such as oil and gold may still help geopolitical hedging. Based on fundamental factors, the bank is still optimistic about the future of such assets. Since the beginning of the year, the commodity UBS CMCI Composite Index has risen nearly 11%.

UBS said that overall, the US may cut interest rates this year, plus “a moderate inventory replenishment cycle, which indicates a more lasting improvement in global industrial activity.”

On Wednesday, oil prices rose as major oil producers were expected to extend production cuts at Sunday's meeting, while traders also closely watched developments in the Middle East.

The market generally expects that OPEC+ will continue to voluntarily cut oil production by 2.2 million barrels per day to support oil prices.

Meanwhile, sources revealed that Reliance Industries, the world's largest refining complex operator, has signed a one-year agreement with Rosneft to buy at least 3 million barrels of oil every month in rubles.

According to reports, the wave of consolidation in the oil and gas industry has not abated. ConocoPhillips (COP.US) will acquire Marathon Petroleum (MRO.US) through an all-stock transaction, which is expected to complete the transaction in the fourth quarter.

Also, as investors await key US inflation data later this week, this may affect expectations about the Fed's interest rate cut prospects, and the price of gold weakens.