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

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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
BSE Sensex rises over 1 percent on reforms, election boost

BSE Sensex rises over 1 percent on reforms, election boost

The BSE Sensex and Nifty rose more than 1 percent on Monday to mark their biggest daily gain in more than one week after the government's energy reforms led to a rally in oil firms, while wins by Prime Minister Narendra Modi's party in two state elections raised expectations for additional reforms.  Full Article 

REUTERS SHOWCASE

Indian State Media

Indian State Media

Controlling the message: Modi chooses state media  Full Article 

ONGC Stake

ONGC Stake

Govt meeting bankers to discuss share sale in ONGC - source  Full Article 

Gold Curbs

Gold Curbs

Finance Ministry wants to reimpose curbs on gold imports - ET  Full Article 

World Stocks

World Stocks

Shares advance on strong data, earnings  Full Article 

IBM Chip Unit

IBM Chip Unit

IBM to pay Globalfoundries to take chip unit  Full Article 

Eyeing Reebok

Eyeing Reebok

Investor group aims to buy Reebok unit - WSJ  Full Article 

Reuters India Mobile

Reuters India Mobile

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