'Too much, too fast' commodity rally unsustainable, says Goldman

The rally across commodities has gotten ahead of fundamentals with the exception of metals, Goldman Sachs said in a note dated Tuesday, adding that it was hesitant to recommend a long position this early in the cycle.

The Wall Street bank sees downside risks in agricultural and energy markets, citing the recent strength as surprising given the massive inventory overhangs and depressed demand.

"Without a shift in balances, any rally in physical commodity markets is unsustainable," Goldman said, adding the climb was "too much, too fast in oil, but not metals."

The metals markets are tight and "extremely strong" Chinese demand from construction and