Goldman Says Commodities to Gain as Central Banks Cut Rates Goldman Says Commodities to Gain as Central Banks Cut Rates Raw materials may return 15% over 2024 as borrowing costs come down, manufacturing recovers, and geopolitical risks persist, analysts including Samantha Dart and Daan Struyven said in a March 24 note. Copper, aluminum, gold and oil products may climb, according to the bank, which also stressed the need for investors to be selective as gains wouldn’t be universal. “We find that US rate cuts in non-recessionary environments lead to higher commodity prices, with the biggest boost to metals (copper and gold in particular), followed by crude oil,” the analysts said. “Importantly, the positive impact on prices tends to increase with time, as the growth impulse from looser financial conditions filters through.” Among Goldman’s year-end forecasts, copper was seen at $10,000 a ton, aluminum at $2,600 a ton, and gold at $2,300 an ounce, which would be a nominal record. The base metals were last near $8,886 a ton and $2,310 a ton on the London Metal Exchange, while bullion was close to $2,167 an ounce. In contrast — and highlighting its call for a selective approach — the bank remained bearish on the outlook for battery metals such as nickel, cobalt and lithium carbonate. “We believe it is too early to call a decisive end to these respective bear markets,” the analysts said. While the Fed left interest rates unchanged last week, officials stuck with their outlook for three cuts this year. Still, a gauge of US inflation due in the coming days — the Fed’s preferred measure of underlying price pressures — probably remained uncomfortably high in February. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Oil Prices Spike as US Inflation Concerns Ease and Geopolitical Tensions Rise READ MORE Oil Prices Reach 8-Week Highs: U.S. Stockpile Drop and China's Stimulus Fuel Surge READ MORE Gold prices hit another record high after fresh U.S. data spurs Fed cut expectations READ MORE Buy gold or gold miners? You don’t have to dig deep to hit paydirt. READ MORE Powell Says a March Rate Cut is Unlikely READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment