Goldman Sachs is back buying commodities after a month and a half hiatus.

On April 11th, Goldman turned near term bearish on commodities. And three weeks later, we saw the beginning of a selloff with a 10% drop in silver as a result of CME raising margin requirements.  A week later CME proceeded to raise margin requirements on Oil as well. 

Commodities all turned lower at the beginning of May.

Month to Date:

Oil - down 12%

Gold - down 2.5%

Silver - down 25%

This morning, Goldman is getting back on the saddle and buying commodities cheaper.  They suggest buying oil, copper, and zinc. 

Goldman raised year-end Brent crude oil price forecast to $120 from $105, 12-month forecast to $130 from $107 and end 2012 forecast to $140 from $120.

They consider the current slowdown in economic growth as part of a normal mid-cycle pause and current weakness represents signs of a slowdown and not a downturn.