Goldman Sachs cut its 12- month prediction for commodity returns, while forecasting gains for crude oil and gold and keeping an "overweight" allocation in raw materials. The bank reduced its estimate for returns to 12% from 15% after prices rallied this year, analysts led by Jeffrey Currie said in a report on Wednesday. They kept their predictions for Brent and gold at $127.50 a barrel and $1,940 an ounce compared with $121.23 and $1,755.30 on Wednesday. Commodities advanced 8.5% this year to the highest level in six months as measured by the Standard & Poor's GSCI index of 24 raw materials. Prices climbed as the US economy strengthened and the Chinese central bank cut reserve requirements. While Morgan Stanley is also bullish on gold, it expects oil prices to decline in the first half as supply recovers and demand slows, it said in a report February 20.
Source: Economic Times
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