Three Reasons Why Goldman Just Turned Very Bullish On Gold
While Goldman has been notoriously bullish on commodities in general, expecting a 43% increase in the GSCI Total Return Index - an index of commodity-price movements - in 2023, and oil in particular - a reco which has yet to bear fruit with the black gold tumbling to start the year (a weakness which we expect will reverse soon), overnight the bank's commodity desk has come out with a surprisingly bullish call on that "other" gold: the original one. Goldman has disclosed three distinct reasons why it believes that Goldman could be one of the best performing assets in the near future.
As his first reason for turning bullish on gold, Goldman commodities trader Ryan Voon writes that throughout 2022 we saw a general migration of gold from west to east, as western ETFs sold gold and Asian physical demand from either central banks or retail soaked it up. But finally we are starting to see ETF holdings stabilize (or even tick up these last few weeks) which should net help the longs here.