Copper, lithium unlikely to match gold’s gains as output rises: Goldman
Record gold prices have lifted sentiment across raw materials, but analysts expect differentiated returns as producers ratchet up output
Producers across the world are likely to ramp up output of commodities such as copper and lithium, limiting the kind of runaway price gains seen in gold even as markets anticipate a prolonged rally in raw materials, Goldman Sachs said.
Gold has surged to record highs, while a range of other commodities have also climbed, as governments and investors seek the perceived “insurance” value of hard assets amid geopolitical tensions and policy uncertainty, the US bank said in a report addressing what the bullion rally might signal for the broader commodities complex.
But copper, shale oil and other resources are unlikely to mirror gold’s trajectory. The main distinction, Goldman argued, lies in how quickly supply can respond.