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Goldman Says Buy Commodities in Worst Weekly Slump This Year

  • Bank sees 3-month return of 6.1% in S&P GSCI commodities index
  • Positive carry in materials like crude reduces investing risk
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Oil Suffers Worst Day of 2019 as Trade Turmoil Swamps Confidence
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Commodity prices are heading for their worst week this year. Goldman Sachs Group Inc. says, cautiously, that’s an opportunity to buy.

While rising macro concerns and escalating trade tensions have weighed on metals and agriculture prices, those risks are starting to be offset by the return of backwardation and a positive carry, analysts including Sabine Schels said in a May 23 note. The S&P GSCI commodity index is generating positive roll returns for the first time in eight months and the bank is forecasting a 3-month return of 6.1%.