Goldman Says Commodity Rally a False Start That's Set to Fizzle
- Calls for shorting copper, aluminum as price slide forecast
- Supply-driven market means stronger prices prompt more output
What's Driving the Surge in Iron Ore?
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Goldman Sachs Group Inc. predicted a rally in commodities from iron ore to gold will falter and forecast copper and aluminum prices will slide as much as 20 percent over the next year.
Any increase in raw material prices will prompt more supplies to enter the market, making it difficult for any advance to be sustained, analysts including Jeffrey Currie wrote in a report dated March 7. The bank maintained its bearish outlook for gold, said iron ore’s surge would prove temporary and reiterated that oil will fluctuate between $20 and $40 a barrel. Goldman also said it was a good time to make bets that copper and aluminum would decline.