Goldman Sachs expected to post higher commodity trading revenue


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(Kitco News) – U.S. investment bank Goldman Sachs took advantage of the latest commodities boom by reporting stellar trading profits in the firm’s commodities trading arm. IFR said the company is on track to earn about $1 billion in commodities trading this quarter following dramatic swings in those markets, according to people familiar with the matter.

The bank was said to have already generated about $500 million in commodity profits before Russia’s invasion of Ukraine in February amid a noticeable increase in client activity, it said. the sources.

It’s not all good news, as analyst firm Coalition Greenwich predicts the top 12 investment banks will report a 7% drop in global markets revenue in the first quarter from a year ago. year. This is also due to the Russian-Ukrainian conflict.

Michael Turner, Head of Competitor Analysis at Coalition Greenwich “This is a significantly healthier market environment for banks than before the pandemic”, adding “While there may be losses, the Increased volatility means these will be offset by gains in other products. Larger banks with a large supply should benefit from a portfolio effect.”

Stocks fell sharply as investors flocked to safe-haven assets like gold. Not only have markets like corn, oil and palladium skyrocketed as supply has been taken off the market. Russia has imposed an export ban on some of its raw materials and raw materials, which has worsened the supply shortfall.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.


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