Goldman Sachs retains bullish view for commodities in 2024


Goldman Sachs held onto its view to go lengthy on commodities in 2024 which have given a 9% return 12 months thus far, which is additional anticipated to rise to fifteen% by year-end, on cyclical and structural help to demand, and geopolitical dangers.
The financial institution forecast a return of 20% in choose sectors reminiscent of power and industrial metals ex-nickel and zinc in the S&P GSCI Commodity Index for 2024, it wrote in a analysis observe dated Sunday.
Data to date throughout developed and rising markets have renewed confidence in cyclical help to commodities this 12 months, the financial institution mentioned, including that charge cuts in the U.S. and Europe from June this 12 months are additional seen supporting commodities demand and costs, notably throughout copper, aluminium and oil merchandise.
Structural help for commodities remained intact, as evidenced by robust inexperienced metals demand and oil product margins 12 months thus far, whereas the function of commodities investing as a geopolitical hedge was nonetheless in the playing cards, as seen in the continued Red Sea transport disruptions and up to date assaults on Russian refining capability.
Copper’s bullish qualities, reminiscent of progressive shortage, notably from second half of this 12 months onward underpins the financial institution’s 12-month 40% worth upside goal.
However, Goldman Sachs took a bearish view for commodities reminiscent of US pure gasoline, lithium, nickel and zinc.
“We continue to recommend investors short Oct’24 Henry Hub,” the financial institution mentioned.
“Within the industrial metals, the segment with the most bearish fundamentals remains battery materials … we believe it is too early to call a decisive end to these respective bear markets.”
On a 12-month foundation, the financial institution targets a 9%, 13%, and 27% draw back in cobalt ($26,000/t), nickel ($15,000/t) and lithium carbonate ($10,000/t), respectively.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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