Goldman Sachs (NYSE:GS) Sees Copper, Crude Oil Rising

Goldman Sachs (NYSE:GS) sees copper and crude oil rising by the end of 2010, surprisingly based on what they're saying will be economic growth.

They say copper could increase to as high as $7,755 a metric ton, while crude oil will probably hit $93 a barrel.

“When you look at the underlying fundamentals, whether it’s macroeconomic data or commodity-specific data, the fundamental picture is still very strong,” said Jeffrey Currie. "With copper, the fundamentals are outright rock solid.”

This is an interesting and contrarian viewpoint for the economic conditions we face, and calling the macroeconomic data fundamentals very strong is puzzling to say the least, especially in light of the emerging slowdown in China, which has caught a lot of people off-guard.

One thing to keep in mind with China is they will probably only slow down a little in comparison to past performance, but even a one percent decline in China is quite a huge hit for raw materials companies and others looking to import to the country.

There are too many variables out there to justify this type of optimism, and while there may be some growth, the manufacturing sector is already in retreat, and commodity prices falling along with demand.