Goldman Sachs Quietly Pulls Out of Commodities

miners tbi

Goldman Sachs drastically changed its exposure to commodities in the third quarter according to a Reuters report from a few days back, via MetalMiner.

This could be a sign that they believe dollar weakness has run its course, or at least that it has become too crowded in the near term.

MetalMiner: The change is reflected in two ways, first, a reduction of 32% in their VaR (value at risk – the sum of money a bank is willing to lose in one day of trades) to $27 million and a reduction in hirings for the commodity department. Of course their change of approach does not preclude them from coming back into the market next year but it supports our own position this last two months that further price increases are unlikely and the fourth quarter could see a drop back in prices as demand fails to materialise as hoped.

Read more here.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.