Goldman cuts commodity outlook – Covers Gold Short

Posted by Whitne McFerron- Futures

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iStock 000021388279XSmall-resize-380x300Goldman Sachs Group Inc. cut its “near-term” outlook for commodities and reduced forecasts for oil and coffee amid prospects for weak demand from China to Europe. The bank also exited a bet on lower gold prices.

Goldman Sachs lowered its three- and 12-month return forecasts for the Standard & Poor’s GSCI gauge of 24 commodities to 2.5%, from 6% in three months and 3% in 12 months, and cut its near-term outlook on commodities to neutral from overweight, according to the report, dated today. It exited its bet on lower gold prices, with a potential gain of 10%, while saying bullion may fall even more.

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