Goldman Sachs(US:GS) Jin Shi Shu Ju·2025-12-19 02:38Group 1: Gold Price Forecast - Goldman Sachs expects gold prices to rise by 14% to $4,900 per ounce by December 2026, based on its base case scenario [1] - The report highlights that structural high demand from central banks and cyclical support from potential Federal Reserve rate cuts will drive gold prices up [1] - The firm continues to recommend a long position in gold due to these factors [1] Group 2: Copper Price Outlook - Goldman Sachs predicts that copper prices will stabilize by 2026, with an average annual price of $11,400 per ton under its base case scenario [1] - Despite recent price increases, copper remains the firm's "preferred" industrial metal due to strong demand growth driven by electrification and supply constraints [1] - Last week, copper prices reached a historical high of $11,952 per ton [2] Group 3: Oil Price Projections - The firm forecasts Brent and WTI crude oil prices to decline, with average prices of $56 and $52 per barrel, respectively, by 2026 [2] - Oil prices are expected to hit a low around mid-2026 as the market anticipates a rebalancing of supply and demand [2] - Factors influencing this include stable demand growth of approximately 1.2 million barrels per day and potential declines in Russian supply due to ongoing conflicts and sanctions [2] Group 4: Long-term Oil Price Expectations - Goldman Sachs indicates that its oil price outlook for 2026-2027 faces downside risks, but prices are expected to rebound in Q4 of next year as the market anticipates a return to supply shortages [3] - By the end of 2028, Brent and WTI prices are projected to gradually rise to $80 and $76 per barrel, respectively [3] Group 5: Natural Gas Price Forecast - The firm predicts that the Dutch TTF natural gas price will be €29 per MWh in 2026 and €20 per MWh in 2027, to stimulate additional demand [3] - U.S. natural gas prices are expected to reach $4.60 per million British thermal units in 2026 and $3.80 in 2027, encouraging production growth [3] Group 6: Electricity Market Risks - Goldman Sachs anticipates a further decline in U.S. electricity reserve capacity due to rapid demand growth and the retirement of coal-fired generation outpacing the construction of renewable and natural gas generation [3] - This situation poses risks of significant price increases and potential blackouts in the U.S. electricity market, particularly in areas with high concentrations of data centers [3]