Meanwhile, with oil weighing the commodities market, Goldman expects further downward pressure on copper and gold markets as well.
Even as energy prices bottom out, the oil per barrel will remain depressed for a period of time as excess supplies are stored and held on for sale in a later time when prices inch higher. Consequently, the prolonged large supply will keep oil prices from quickly bouncing back. [Oil ETFs: Investment Banks Cut Crude Outlook on Supply Glut]
Additionally, the investment bank projects copper prices will also remain low in the short-term as weaker growth, notably in China, diminishes demand. Meanwhile, Goldman holds a shaky outlook on gold as safe-haven assets lose favor. DBC includes a 8% tilt toward gold and 4.2% in copper. GCC has a 24% position in metals. [Gold ETFs Pinched by Euro Demand, Negative Analyst Chatter]
For more information on the commodities space, visit our commodity ETFs category.
Max Chen contributed to this article.