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Goldman Sachs believes that the impact of Trump's policies on copper demand will be limited because the metal is more closely related to housing construction, and as housing construction weakens at the end of the year, coupled with China's tightening of mortgage loans and home sales, Weaker demand is expected to accelerate the copper supply glut. Goldman Sachs also reiterated its view that zinc prices will grow faster than copper.
Goldman Sachs still has mixed views on the outlook for gold. According to Goldman Sachs, while fiscal and geopolitical uncertainty, as well as potential rising inflation and import tariffs, may be beneficial to gold, stronger economic growth may be negative for gold. Moreover, the Federal Reserve is still expected to raise interest rates next month. Until the details of the policy are clarified in the first half of next year, the fate of gold, which is regarded as a safe haven by investors, is still unpredictable.
While Trump’s proposal to lower emissions reduction targets could boost demand for coal, Goldman Sachs believes natural gas is the real winner. In the power industry, natural gas is more competitive than coal. In the petrochemical industry, natural gas is also favored over oil. Goldman Sachs analysts wrote: We believe China's policies to support domestic and international coal prices are likely to continue until the end of this decade, which will further enhance the competitiveness of natural gas in the global power generation market.
Hunan Weide Bulk Commodity Spot Trading Center investment hotline: QQ Manager Liu