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AFR Article written by Alex Gluyas and published 18.11.24 5.15pm: Goldman reveals the best commodities to buy for 2025
In part:
Goldman’s head of commodity research Daan Struyven has said, “Long gold and oil positions can act as critical inflation and geopolitical hedges in tail scenarios, including tariff escalation, geopolitical oil supply disruptions, and debt fears,”
The bank forecasts the S&P GSCI benchmark, one of the broadest measures of global commodities, to increase 11 per cent by the end of 2025. Excluding agriculture and livestock, it sees the benchmark gaining 16 per cent.
That will be fuelled by a resurgent gold price, which Goldman still expects to hit $US3000 an ounce by December next year. While the precious metal has retreated 7 per cent since the US election, it has created an “attractive entry point” for traders.
Goldman’s bullish gold forecast is mainly driven by growing demand from central banks and an expected boost in exchange-traded fund holdings as the US Federal Reserve cuts rates.
Morgan Stanley is less optimistic, warning that a stronger US dollar and higher Treasury yields will leave prices at $US2600 an ounce by the end of next year.
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