Leading investment bank Goldman Sachs remains bullish on copper prices in 2024. Copper prices briefly touched the $10,000 mark again on Thursday indicating a bullish thesis in the commodity markets. The metal is among the top-performing assets this year surging by nearly 15% year-to-date. Other top commodities like silver, gold, and the U.S. dollar have also spiked 12%, 11%, and 5% this year, respectively.
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The commodity market is attracting heavy bullish sentiments in 2024 as fears of a stock market crash loom due to the ongoing conflict between Iran, Israel, and Palestine. Institutional funds and central banks of developing countries are entering the commodity market and are driving the prices up drastically. The inflow of funds puts copper prices in the spotlight and a new updated forecast from Goldman Sachs is attracting more investors into its flock.
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Prediction: Goldman Sachs Raises Copper Prices To $12,000 in 2024
Goldman Sachs revised its forecast for copper prices and predicted the metal could touch $12,000 a ton in 2024. The investment bank had predicted that copper prices would reach $10,000 previously and the forecast turned accurate in Q2 this year. The important factor that will drive copper prices up is the ‘less supply and more demand’ in the global markets.
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Copper is now the most sought-after metal for usage and the majority of multinational producers are buying it. Since the supply is limited, prices are now hitting the roof making it touch new highs every month. Goldman Sachs’ analyst Nicholas Snowdon wrote that the copper’s “stockout episode” will be the main ingredient that drives prices up.
“We continue to forecast a shift into open-ended and mounting metal deficits from 2024 onwards,” wrote the analyst. Copper prices will jump 20% this year hitting new all-time highs if the prediction from Goldman Sachs turns accurate again.
