Goldman Sachs Says Trade War Won’t Interrupt Commodities Rally

Investing.com – Concerns about a trade war hurting commodities are overdone, so expect prices to continue higher.
That’s what Goldman Sachs (NYSE:) told clients in a recent note.

The Wall Street firm remains overweight in the asset class and expects commodities to rise 10% over next 12 months, based on the S&P Goldman Sachs Commodities Index.

Goldman says “the trade war impact on commodity markets will be very small.

The firm says most commodities subject to tariffs can be rerouted and sold to other markets, averting a supply glut and associated price declines.

Goldman has been overweight on commodities since 2016, but has grown more bullish in recent months, citing strong global economic growth and declining inventories.

Goldman’s commodities index is up 9% this year, while the is up just 2%.

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