Goldman Sachs like commodities – at the beginning of a structural uptrend

Forex

GS analyst remarks on commodities 

The currrent recovery to “be the beginning of a much longer structural bull market for commodities” 

GS cite 3 factors that will drive prices higher:

  1. 10 years prior has seen a lack of investment, leaving inadequate production capacity to meet a V-shaped, vaccine-driven demand recovery
  2. policies to address the impact of coronavirus are aimed at social need instead of financial stability – will “likely create cyclically stronger, more commodity-intensive economic growth that should create the elusive cyclical upswing in demand”
  3. commodities will benefit from revaluation and relation, with a rise in government spending, particularly in the US

Let’s block ads! (Why?)

Forexlive RSS Breaking news feed

Leave a Reply

Your email address will not be published. Required fields are marked *