Goldman Sachs says commodities looking for ‘total outperformance’ this year

Commodities set for a “bullish concoction” in 2023, considering “outstanding total profitThat will outperform other asset classes, Goldman Sachs analysts said Monday in a new research report, according to Kitco.com.

Commodity prices spike the first half of last year before falling due to rising interest rates and lower demand, but Goldman’s head of commodities research Jeff Currie expects a very positive 2023 as China reopens amid the financial crisis. low inventory.

In the oil market, some drivers are not priced at the maximum, Goldman said.

“Oil markets are failing to value the expected increase in demand combined with a slowdown in Russian production,” Goldman said, calling China’s reopening “a factor.” change the game”.

Commodities such as crude oil, refined petroleum products, LNG and soybeans have “particularly benefited from Chinese demand,” Goldman said.

According to the bank, energy is likely to grow 46.9%, industrial metals 29.6% and precious metals 5.7% over the next 12 months.

ETFs include (USO), (BNO), (USL), (DBO), (Drip), (EXTRUSION), (GLD), (IAU), (NUGT), (physics)

Goldman Sachs recently chose “Top 50 Return on Equity stocks for a tough ROE year.”