Goldman sees 2012 upside in oil, gold, copper

Fri Jan 13, 2012 5:07pm IST

A shopkeeper takes a gold ring on display to show a customer inside a jewellery shop in Taipei April 26, 2011. REUTERS/Pichi Chuang/Files

A shopkeeper takes a gold ring on display to show a customer inside a jewellery shop in Taipei April 26, 2011.

Credit: Reuters/Pichi Chuang/Files

Related Topics

Rajalakshmi (C), 28, smiles after winning the Miss Wheelchair India beauty pageant in Mumbai November 26, 2014. REUTERS/Danish Siddiqui

Miss Wheelchair India

Seven women from across India participated in the country's second wheelchair beauty pageant, which aims to open doors for the wheelchair-bound in modelling, film and television, according to organisers  Slideshow 

REUTERS - Goldman Sachs said it expected upside in prices of oil, gold and copper this year, citing greater supply risks and stronger fundamentals.

"We view gold and copper as providing the best value opportunities relative to our view of fundamentals in 2012," the investment bank said on Friday, citing remaining risks of substantial supply shortfalls.

Goldman said it continued to expect a rise in oil demand in excess of production capacity gain, despite the slowdown in global economic growth.

"In our view, it is only a matter of time before inventories and OPEC spare capacity become effectively exhausted, requiring higher oil prices to restrain demand, keeping it in line with available supply," it said.

The bank said it expected gold prices to continue to rise through 2012, reaching $1,940 per ounce in 12 months, due to the current low level of U.S. real interest rates.

"We expect US real interest rates to remain lower for longer, given our U.S. economics team's expectation for U.S. economic growth to remain slow through 2012," Goldman added.

Goldman kept its 12-month return forecast for the S&P GSCI Enhanced Commodity Index of 15 percent, and its overweight allocation to commodities remained unchanged.

In another note, investment bank Barclays Capital BARCBC.UL said more sanctions against Iran could push oil prices well into the $130-140 per barrel range.

"While the focus of the oil market is the potential closure of the Strait of Hormuz, sanctions can actually have a knock-on impact on underlying balances," it said.

(Reporting by Naveed Anjum and Naveen Arul in Bangalore;Editing by Clarence Fernandez)

FILED UNDER:

Online Grocery Shopping

REUTERS SHOWCASE

Vodafone Tax Dispute

Vodafone Tax Dispute

India advised against challenging Vodafone tax ruling - source  Full Article 

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage