Gold rallied to an all-time high, fueled by Fed fears and expectations of rate cuts, while risks of a crude oil oversupply raise concerns of a market glut and decline in prices, Westpac (ASX:WBC, NZE:WBC) said on Wednesday.

Westpac's Commodity Export Price Index rose around 3% in August, representing a solid performance across key commodities, especially gold, crude oil, iron ore, and copper.

Gold jumped to a record high of above $3,600 per ounce in early September as its bullish momentum held ground. Despite looming macroeconomic threats and political developments, Westpac expects gold to continue making new highs, led by growing investor interest.

Crude oil could lead to a market shift as the members of oil-exporting countries, OPEC, plan to increase production by 137,000 barrels per day from October. This additional supply hints at a global surplus and indicates OPEC is prioritizing market share over price stability, the bank added.

The bank projects Brent crude to fall to US$60 per barrel by June 2026.