Skip to content
Subscriber Only

Goldman Predicts Commodities Will Soar in 2019

  • G-20 leaders’ summit this week may be ‘catalyst for a rebound’
  • Bank sees ‘extremely attractive’ entry point for bets on gains
Bloomberg business news
Oil Demand Has Been Driving the Prices Lower, Says Fat Prophets' Lennox

Commodity bull Goldman Sachs Group Inc. is undaunted by the sell-off in raw materials and is forecasting returns of about 17 percent in the coming months, describing the current situation as unsustainable and touting this week’s G-20 meeting in Buenos Aires as a potential turning point.

“Given the size of dislocations in commodity pricing relative to fundamentals -- with oil now having joined metals in pricing below cost support -- we believe commodities offer an extremely attractive entry point for longs in oil, gold and base,” analysts including Jeffrey Currie said in a report. The note listed its top 10 trade ideas for 2019, including a rebound in Brent as OPEC cuts supply.