Goldman forecasts 7% return on commodities

Goldman Sachs Group forecasts a seven per cent return from commodities in the next 12 months, with energy and precious metals leading the way.

The Standard & Poor’s GSCI Enhanced Commodity Index gain will include 10 per cent for energy, 7.5 per cent for industrial metals and eight per cent for precious metals, the bank said in a report e-mailed on Monday.

“We believe commodities will remain an attractive investment as roll yields should support returns,” analysts, including Jeffrey Currie said in the report. “We believe commodities remain a hedge against the risk of supply disruptions in currently tight markets, leading to higher commodity prices with a negative impact on economic growth and other asset classes.”