Goldman Cuts Commodities Outlook, but Stays Bullish on Gold

While commodity prices have surged thus far in 2012, Goldman Sachs offered a bit of caution for investors expecting further gains this year.

In a recent note to clients, analysts led by Jeffrey Currie lowered the firm’s 12-month expected return forecast for the broader commodities complex to 12% from 15% – according to a Bloomberg report.

Goldman Sachs did maintain an “Overweight” rating on the sector, however.

Although the firm reduced its general outlook, it remained quite bullish on two commodities in particular – gold and oil.  Goldman reiterated its 2012 average gold price target of $1,940 per ounce.  As for oil, it contended that “With much of the ‘value’ opportunities behind us, we look to fundamental drivers for further expected gains in 2012, which we believe will be centered in the oil complex.”