Goldman Sachs predicts strong returns on commodities and energy

Goldman Sachs predicts higher returns on commodities in the next 12 months, driven by higher spot prices, easing monetary policy, and hedging against geopolitical supply risks. The bank forecasts a 21% return on the S&P GSCI Commodity Index, with energy and industrial metals leading the way. Factors such as OPEC-driven declines in oil inventories, demand for green metals, and ongoing resilience in commodity demand are expected to support these returns. However, the bank has trimmed its 2024 average Brent price forecast due to factors such as a warmer fourth quarter and rising supply from some producers.