Goldman: Commodity bear market will continue

In a recent note, Goldman analysts say the rebound in commodity prices over the last several weeks isn’t going to hold. The investment bank believes the rally will reverse due to a stronger US dollar, cheaper oil, and an economic slowdown in China. GS is most concerned with copper, which they predict to drop 16% over the next year. Oil is also expected to drop to $45 a barrel, driven mostly by oversupply. “We believe that current prices represent a very strong selling opportunity, for producers and investors alike,” wrote Goldman in regard to copper. As copper tends to be a leading indicator of economic growth, Goldman’s prediction doesn’t necessarily bode well for the global economy. However, some pressure will be alleviated by lower oil prices. (VIEW LINK)

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.