2012 (952)
Goldman Sees a 29% Return From Commodities Over 12 Months
Goldman Sachs Group Inc. (GS) said it expects a 29 percent return from the Standard & Poor's GSCI Enhanced Commodity Index over the next 12 months, with the biggest gains in energy and base metals.
Policymakers in Europe will be able to contain the continent's debt crisis, while recovery in the U.S. and China is set to continue, Jeffrey Currie, head of commodities research in New York, said today in a report. Returns on energy investments may be 41 percent in 12 months, compared with 23 percent in base metals and 18 percent in precious metals, while agriculture is forecast to lose 14 percent in the period, according to the report.
"Although the macroeconomic backdrop still remains uncertain, particularly in Europe, we believe that the sell-off in commodity prices is likely overdone and the price risks are shifting more to the upside," Currie wrote.
