Goldman Sachs experts said that given expectations of monetary policy easing by the Fed and the ECB, commodity prices are likely to continue to rise in 2024.
"According to our forecasts, the cost of raw materials will increase by 15% this year against the background of lower borrowing costs, production recovery, as well as continuing geopolitical risks," experts said, adding that investors should pay special attention to copper, aluminum, gold and petroleum products.
Fed and ECB policymakers have announced their intention to begin easing monetary policy this year amid lower inflation. In addition, China has announced further support for its recovery.
"We believe that a reduction in US rates in the absence of a recession will cause commodity prices to rise, especially copper, gold and oil. It is important to note that the positive impact on prices tends to intensify over time, as the growth momentum from softer financial conditions manifests itself," Goldman Sachs said.
According to Goldman Sachs forecasts, by the end of this year, the cost of copper may reach $10,000 per ton, and aluminum prices will rise to $2,600 per ton. As for gold, experts predict an increase in prices to $2,300 per ounce.