# Goldman Sachs: Why the commodities rally might be different this time

> Goldman Sachs maintained an overweight call on commodities, arguing that prices usually rally as the Fed enters hiking cycles and rising Chinese rates coincide with better performance. The bank flagged three risks: U.S. shale oil's faster supply response, diminishing Chinese demand, and the Fed's gradual hiking path.

- Date: 2017-05-09 · published 2017-05-09T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/70919-goldman-sachs-why-the-commodities-rally-might-be-different-this-time
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Goldman's view favors firmer commodity prices over the coming year, but the shale and China risks could cap gains in energy and industrial-linked markets that feed into feed input costs.

## Read by commodity

- WTI: neutral
- CORN: neutral
- BRENT: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-07-27 | [Dollar’s weakness boosts rally in commodities and currencies - Gulf Times](https://feedsoft.ai/events/5318-dollar-s-weakness-boosts-rally-in-commodities-and-currencies-gulf-times.md) | -2.7% | +2.6% |
| WTI | 2024-09-19 | [Rate cut a plus for some commodities, but demand and supply forces will still be key - The Business Times](https://feedsoft.ai/events/28217-rate-cut-a-plus-for-some-commodities-but-demand-and-supply-forces-will-still-be.md) | -1.9% | -1.1% |
| WTI | 2017-10-18 | [Commodities following different paths on a common upward hill - Scotiabank — Octa](https://feedsoft.ai/events/68395-commodities-following-different-paths-on-a-common-upward-hill-scotiabank-octa.md) | +1.0% | +7.3% |
| WTI | 2025-09-30 | [From geopolitics to rate cuts: What’s shaping commodities markets?](https://feedsoft.ai/events/22764-from-geopolitics-to-rate-cuts-what-s-shaping-commodities-markets.md) | -2.8% | -3.3% |
| WTI | 2023-06-29 | [The Commodities Feed: Hawkish Fed comments weigh on the complex \| articles \| ING THINK](https://feedsoft.ai/events/35414-the-commodities-feed-hawkish-fed-comments-weigh-on-the-complex-articles-ing.md) | +3.2% | +15.2% |
| BRENT | 2020-07-27 | [Dollar’s weakness boosts rally in commodities and currencies - Gulf Times](https://feedsoft.ai/events/5318-dollar-s-weakness-boosts-rally-in-commodities-and-currencies-gulf-times.md) | -0.2% | +1.9% |
| BRENT | 2025-09-30 | [From geopolitics to rate cuts: What’s shaping commodities markets?](https://feedsoft.ai/events/22764-from-geopolitics-to-rate-cuts-what-s-shaping-commodities-markets.md) | -3.2% | -4.3% |
| BRENT | 2025-01-09 | [How geopolitics will ripple through oil prices in 2025 \| Goldman Sachs](https://feedsoft.ai/events/26688-how-geopolitics-will-ripple-through-oil-prices-in-2025-goldman-sachs.md) | +7.8% | -2.7% |

## Sources

- cnbc.com: https://www.cnbc.com/2017/05/08/goldman-sachs-why-the-commodities-rally-might-be-different-this-time.html

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.