Goldman Lowers Commodity Return Forecast, Stays Overweight

Goldman Sachs Group Inc. cut its 12-month prediction for commodity returns, while forecasting gains for crude oil and gold and keeping an “overweight” allocation in raw materials.

The bank reduced its estimate for returns to 12 percent from 15 percent after prices rallied this year, analysts led by Jeffrey Currie said in a report today. They kept their predictions for Brent and gold at $127.50 a barrel and $1,940 an ounce compared with $121.23 and $1,755.30 today.