Goldman Sachs Goes Long Commodities in Reflation Trade

The video discusses the global economic reflation and its impact on industrial metals, highlighting the role of Chinese economic policies and the business cycle in driving demand. It examines the dynamics of supply and demand, market repricing, and forward curves, predicting returns for various commodities. The outlook for gold is analyzed in the context of economic stimulus and rate hikes, while backwardation and dollar dynamics are explored for their influence on commodity returns.

What is the significance of the output gap in relation to commodity prices?

Discuss the potential effects of a stronger dollar on commodity prices as mentioned in the text.

What are the expected returns for commodities in the next year according to the analysis provided?