Commodities markets bullish in 2021: Goldman Sachs
A weak dollar, increasing risks of inflation, and demand driven by stimulus from major central banks will lead to a bull market for commodities in 2021, according to Goldman Sachs.
The bank forecast the S&P/Goldman Sachs Commodity Index to produce a 28% return over a 12-month period. Precious metals are expected to produce a return of 17.9%, energy with 42.6%, industrial metals with 5.5%, and agriculture a negative return of 0.8%.
Goldman also forecast gold prices to average at $1,836 per ounce in 2020 and $2,300 per ounce in 2021. Silver is expected to be at $22 per ounce in 2020 and $30 per ounce the following year.
Spot gold last traded at $1,915.04 per ounce, while silver stood at $24.85 per ounce. Gold has gained 26% this year, lifted by global stimulus and near-zero interest rates.