Goldman Sachs: Gold’s Rally Not Indicative of Commodity Supercycle

Notwithstanding the recent surge in gold prices, Goldman Sachs has poured cold water on the idea that an overarching commodity bull market or ‘supercycle’ is afoot. The investment banking behemoth argues that the uptick in the price of the precious metal, often viewed as a harbinger of broader economic trends, is more likely attributable to current geopolitical tumult and its concomitant impact on risk sentiment. In the firm’s view, the fundamentals underpinning many other commodities—a lack of robust demand growth, improved supply prospect etc.—limit the chances of a comprehensive, cross-commodity bull run. Read More