US investment bank Goldman Sachs is confident that commodity markets will outperform the average performance of markets with different types of assets next year. Commodities are said to be a good hedge against inflation in 2021.
According to Goldman Sachs, commodity markets will fall into the “clutches” of bulls, which, with their willingness to buy, will cause commodity prices to rise practically throughout next year. Goldman Sachs’ commodity index is expected to appreciate by about 27 percent over the next twelve months. Precious metals are expected to strengthen by less than a fifth, energy by 40.1 and industrial metals by 3 percent. Agricultural commodities, on the other hand, should be about a percent cheaper.
According to Goldman Sachs, the price of gold per troy ounce should climb to 2,300 and silver to $30. Gold will rise mainly due to escalating inflationary pressures, and the price of silver should increase due to growing demand for photovoltaic panels for electricity generation. Analysts at Goldman Sachs worsened the outlook for oil last week, which is unlikely to rise in price as originally expected. This is due to subdued demand due to the onset of the second wave of the coronavirus epidemic. On the other hand, the rapid success of the vaccine could reverse the price trend.