|UUP||INVESCO DB US DOLLAR INDEX BULLISH FUND - USD ACC||24.55||+0.20||+0.82%|
|UDN||POWERSHARES DB US DOLLAR BEARISH FUND||21.36||-0.18||-0.85%|
The firm forecasts the S&P Goldman Sachs Commodities Index will surge 28% over the next 12 months, led by energy (+43%) and precious metals (+18%). Agriculture (-0.8%) is the complex within the commodities space where a drop in prices is expected to occur.
The bull market will be driven by structural under-investment in the old economy, policy-driven demand and tailwinds from a weakening dollar and rising inflation risks, wrote analysts led by Jeffrey Currie.
“These drivers remain consistent with our bullish views from the start of this year, and have now been intensified by COVID-19 disruption and the subsequent global policy response,” they said.
Tighter inventories across almost all of the major commodities, many of which are in a deficit, means that barring a collapse in demand, markets are likely to continue rebalancing even if there is another wave of COVID-19 infections.
|GLD||SPDR GOLD SHARES TRUST - EUR ACC||171.11||-2.94||-1.69%|
|SLV||ISHARES SILVER TRUST||25.26||-0.39||-1.52%|
Goldman sees gold climbing to $2,300 an ounce next year and silver reaching $30, good for gains of 19% apiece.
|USO||UNITED STATES OIL FUND L.P.||48.75||-0.23||-0.47%|
West Texas Intermediate crude oil, meanwhile, is expected to rally 36% to $55.90 per barrel. With inventories remaining high, the firm believes prices will begin to gain momentum “after winter.”