Latest news with #DaanStruyven
Bloomberg
3 days ago
- Business
- Bloomberg
Goldman Tweaks OPEC+ Call With Outlook for Final Hike in August
Goldman Sachs Group Inc. said it expects OPEC+ to repeat recent production increases for a fourth month for August, a change from its earlier forecast that the group would pause after last weekend's meeting. 'Relatively tight spot oil fundamentals, beats in hard global activity data, and seasonal summer support to oil demand' are all supportive, analysts including Daan Struyven said in a note. 'The expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6.'
Yahoo
29-05-2025
- Business
- Yahoo
Goldman Urges Investors to Buy Gold and Oil as Long-Term Hedges
(Bloomberg) -- Goldman Sachs Group Inc. touted gold and oil as hedges against inflation in long-term portfolios, citing the appeal of bullion as a haven amid concerns over US institutional credibility and crude's ability to protect against supply shocks. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight NY Congestion Pricing Is Likely to Stay Until Year End During Court Case Analysts including Daan Struyven said investors with so-called 60/40 portfolios — an investment strategy of allocating to equities and bonds — have historically been able to maintain average annual returns while reducing risk by adding long-term allocations of the two commodities. 'Following the recent failure of US bonds to protect against equity downside and the rapid rise in US borrowing costs, investors seek protection for equity-bond portfolios,' the analysts said in a note on Wednesday. 'During any 12-month period when real returns were negative for both stocks and bonds, either oil or gold have delivered positive real returns.' The analysts recommended a higher-than-usual allocation to bullion and a lower-than-usual — but still positive — weighting to crude, calling the commodities 'critical' hedges against inflation shocks that tend to hurt bond and equity portfolios. The popular 60/40 approach has been challenged in recent years as its underlying mechanism broke down, with US stocks and bonds moving in lockstep rather than offsetting each other. The strategy has seen fresh setbacks as long bonds have slumped in recent months, driven by investors' growing reluctance to hold long-term US sovereign securities amid spiraling debt and deficits. That wariness underscores the potential risk that markets could lose faith in the credibility of US institutions. Such a scenario — which would likely boost bullion's allure as a haven asset — could trigger a sustained selloff in both US bonds and equities, according to Goldman. The analysts, citing historical data, said 60/40 portfolio holders targeting an average annual return of 8.7% have been able to reduce risk from about 10% to just under 7% through adding gold and oil. Meanwhile, US President Donald Trump's contentious relationship with the Federal Reserve has also added to worries, following several comments indicating his desire to oust Chair Jerome Powell from his position. Reduced central bank independence has historically led to higher inflation, they added, again pointing to bullion as a hedge in a higher price environment. If concerns about the US fiscal position and Fed independence intensify, a flight into gold by private investors could drive prices well beyond the bank's current forecast of $3,700 an ounce by year-end and $4,000 an ounce by mid-2026. Given the bullion market is small relative to other major asset classes, 'even a small diversification step out of US fixed income or risk assets could cause the next giant leap for gold prices,' the analysts said. Robust central bank purchases for at least another three years should also underpin the metal's strength, they added. Oil is also a positive for Goldman, with energy disruptions difficult to predict and a likely sharp slowdown in non-OPEC supply growth from 2028 raising the chance of a supply shock. Still, high spare capacity limits the upside for now, the analysts said. Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P.
Bloomberg
29-05-2025
- Business
- Bloomberg
Goldman Urges Investors to Buy Gold and Oil as Long-Term Hedges
Goldman Sachs Group Inc. touted gold and oil as hedges against inflation in long-term portfolios, citing the appeal of bullion as a haven amid concerns over US institutional credibility and crude's ability to protect against supply shocks. Analysts including Daan Struyven said investors with so-called 60/40 portfolios — an investment strategy of allocating to equities and bonds — have historically been able to maintain average annual returns while reducing risk by adding long-term allocations of the two commodities.
Yahoo
28-05-2025
- Business
- Yahoo
Goldman Sachs analyst predicts $4,000 gold, calls it a better hedge than Bitcoin
Gold is set to shine even brighter, according to Goldman Sachs. Daan Struyven, the bank's co-head of global commodities research, says gold could soar to $4,000 per troy ounce by mid-2026, positioning the precious metal as a superior hedge compared to Bitcoin. In a discussion with strategy firm Veriten, Struyven made a compelling case for gold's continued rise, citing supply scarcity and investor demand amid inflation fears. 'Supply is very limited. The vast majority of the available gold supply has already been mined,' Struyven explained. 'And Bitcoin supply, by design, is limited, and I think this limited supply gives some confidence to investors who are worried about runaway inflation which may be caused by a potentially aggressive increase in money supply.' At the time of writing, gold is priced at $3,310.74, while Bitcoin (BTC) is trading at $109,000 after briefly hitting a record high of $111,900 last week. BTC is up nearly 3% in the past week and 18% in the past month. While acknowledging Bitcoin's strong historical returns, Struyven warned that crypto's volatility makes it a less reliable hedge compared to gold. He emphasized Bitcoin's growing correlation with tech stocks as a point of concern. 'Bitcoin has booked higher returns than gold over the past few years, but is also more volatile and sensitive to drawdowns,' he said. 'Both Bitcoin and equities tend to do well when risk sentiment is positive.' Bitcoin is often referred to as "digital gold" because it shares key characteristics with the precious metal, most notably, its scarcity and role as a hedge against inflation. Like gold, Bitcoin has a finite supply; only 21 million BTC will ever exist, and this capped issuance mirrors gold's limited physical supply on Earth. This scarcity makes Bitcoin appealing to investors seeking assets that resist currency debasement, especially during periods of aggressive monetary expansion by central banks. Beyond scarcity, Bitcoin also offers portability, divisibility, and verifiability—qualities that some argue make it an even more efficient store of value than gold. While gold requires secure storage and physical handling, Bitcoin can be transferred globally within minutes at relatively low cost. These attributes have led institutional investors and financial firms to embrace Bitcoin as a modern, tech-enabled alternative to gold in the digital age, reinforcing its growing nickname as "digital gold." Goldman Sachs analyst predicts $4,000 gold, calls it a better hedge than Bitcoin first appeared on TheStreet on May 28, 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
14-05-2025
- Business
- Bloomberg
Goldman Says Trump Favors $40-$50 Oil After Scrutinizing Posts
US President Donald Trump appears to prefer oil prices between $40 and $50 a barrel, according to Goldman Sachs Group Inc., citing an in-house analysis of his social-media posts on the topic. Trump 'has always been focused on oil and on US energy dominance, having posted nearly 900 times,' analysts including Daan Struyven said in a report. His 'inferred preference for WTI appears to be around $40 to $50 a barrel, where his propensity to post about oil prices bottoms,' they said.
