Market Outlook Brief: Commodities & Asian Equities **Date:** January 26, 2026 Precious Metals: Structural Bull Run Intact The rally in precious metals shows no signs of fatigue. Joanne Goh, Senior Investment Strategist at DBS Bank, maintains a **constructive outlook** on gold and silver, citing persistent structural drivers: US fiscal concerns, monetary debasement risks, and sustained central bank buying. Current market figures reflect this strength. As of today, **Gold (MCX)** is trading near **₹1.61 Lakh per 10g**, while **Silver** continues its impressive run, hovering around **₹3.35 Lakh per kg**. DBS has upgraded its 12-month gold price target to **$3,330/oz** (by 1Q26), viewing the metal as a critical portfolio diversifier against geopolitical volatility and currency risks. Silver is also favored for its dual role as a monetary hedge and a key industrial input for green energy technologies. --- AI Trade: Pivot to "Adapters" While the Artificial Intelligence theme remains a long-term growth engine, caution is advised regarding potential froth in pure-play technology stocks. The strategy is shifting from chasing overvalued tech giants to identifying **"AI Adapters"**—companies outside the tech sector that are effectively deploying AI to drive efficiency and widen margins. Investors are encouraged to look for value in large-cap firms with the capital and data advantages necessary to implement AI at scale, rather than speculative tech startups. --- India & Asian Equities: Where Value Emerges Despite recent volatility and FII outflows impacting the Nifty and Sensex (which closed sharply lower on Jan 23), the advice is to **maintain equity exposure**. **India Strategy:** Value is emerging in domestic-demand-centric sectors protected from global trade headwinds. Key focus areas include: * **Infrastructure & Capital Goods:** Supported by government capex. * **Banking:** Benefiting from credit growth and deregulation. * **Manufacturing:** Aided by "China +1" supply chain shifts. **Asian Regional Outlook:** Broader Asian markets are entering a "re-acceleration phase." **ASEAN equities** are projected to see earnings momentum improve, with banks serving as the best proxy for this growth. **Singapore equities** remain a strong pick for defensive yield, with the STI target set at **4,880 by end-2026**, driven by market reforms and safe-haven inflows. **Core Approach:** Adopt a "Barbell Strategy"—balancing secular growth themes (AI, aging population) with stable income generators (high-quality bonds, dividend-yielding equities, and REITs) to navigate ongoing geopolitical risks.