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Goldman Sachs anticipates upside in costs of gold, copper and oil.


Posted 13 Jan 2012 by jaijai

Investment Bank Goldman Sachs said it excepts price benefits of gold, copper and oil in 2012 referring to powerful basics and better supply risks.


Goldman Sachs said it sees copper and gold as the best ones to offer most excellent value prospects in relation to their basic views in this current year, mentioning the residual dangers of significant supply deficits.


It said despite the growth in global economy, it anticipates an increase in the demand of oil in surplus of manufacture capacity gain.


Goldman said in its outlook, it is just a matter of time ahead of inventories and the spare capacity of OPEC auxiliary ability becomes exhausted effectively, thereby obliging the high oil price to hold back the demand, staying in line with the suppy that is available.


The investment bank anticipated the price of gold to be on the rise all through the year of 2012 touching the price of $1,940 for each ounce, because of the present minimum level of actual interest rates prevailing in the US.


The investment bank further added that it foresees the real interest rates in the US to stay minimal for a longer period, as per the anticipation of their US economic team for the growth in US economy to slow throughout the year 2012.


The twelve month return forecast of Goldman for the 15% S&P GSCI Enhanced Commodity Index and the overweight allotment to the merchandise stays unaffected.

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