Adam Smigielski
Goldman Sachs’ commodities research team remains “selectively bullish” on assets such as copper (HG1:COM), gold (XAUUSD:CUR), and oil (CL1:COM), as the investment bank said demand growth remains in good standing.
“We remain selectively bullish commodities because 1) demand growth remains solid, 2) we see more structural upside in industrial metals and gold, and 3) oil’s geopolitical risk premium has shrunk. We expect commodity total returns to rise from 13% YTD to 18% by year-end,” Goldman Sachs said in an investor note on Thursday.
From the perspective of copper, the investment bank said that the commodity has the potential of an additional 15% upside to $12,000/t by year-end.
As for gold, Goldman Sachs predicts that the precious metal will climb another 14% to $2,700/oz by the end of 2024.
With regard to Brent oil prices, the financial institution said that it expects the price to stay in its $75/bbl to $90/bbl range, but still sees the value in net long oil positions from a geopolitical stance.
For investors that are further looking to track the commodities market they can look towards exchange-traded funds as a proxy to the underlying commodity. Outlined below are a handful of copper, gold, and oil ETFs that market participants can further analyze:
Copper ETFs: (CPER), (COPX), and (OTC:JJCTF)
Gold ETFs: (GLD), (GDX), (GDXJ), (IAU), (NUGT), (PHYS), (GLDM), (AAAU), (SGOL), (BAR), and (OUNZ).
