Oil, gold and a host of other commodities have been red hot this year. Today, analysts at Goldman Sachs tried to douse the flames a bit. The firm said it recommended getting out of gold, agricultural commodities and West Texas Intermediate crude futures positions. The firm hedged a bit, saying they were making a “tactical” call for the short-term, not claiming that the commods were seriously topping out. “It is important to emphasize that we remain longer-term positive on oil, agriculture and gold and would view price dips as opportunities to re-establish long positions,” Goldman concluded.
In any event, when Goldman talks it appears that investors listen. Oil is off 3% on the day. Lest though think that large one-day move is a sign of things to come, the fine folk at Bespoke Investment Group point out in the chart below that we’ve now had 12 days this year when oil dropped at least 3% in the midst of its huge bull run from $50 a barrel up close to $100. Gold, silver, wheat and a bunch of other futures followed oil down, too.