Leading investment bank Goldman Sachs remains optimistic about copper prices in 2024. Copper prices briefly touched the $10,000 mark again on Thursday, indicating a bullish thesis in commodity markets. The metal is one of the best performing assets this year, up almost 15% this year. Other top commodities such as silver, gold and the US dollar are also up 12%, 11% and 5% respectively this year.
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The commodities 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 enter the commodity market and drive up prices drastically. The influx of funds is putting a spotlight on copper prices, and a new updated forecast from Goldman Sachs is drawing more investors to its fold.
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Prediction: Goldman Sachs raises copper price to $12,000 by 2024
Goldman Sachs revised his prediction for copper prices and predicted the metal could reach $12,000 per tonne by 2024. The investment bank had predicted that copper prices would reach $10,000 sooner and the forecast became accurate in the second quarter of this year. The major factor that will drive up copper prices is 'less supply and more demand' in global markets.
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Copper is now the most sought-after metal for use and the majority of multinational manufacturers purchase it. With supply limited, prices are now skyrocketing, reaching new highs every month. Goldman Sachs analyst Nicholas Snowdon wrote that the buyer “stockout episode” will be the key ingredient driving up prices.
“We continue to predict a shift to open-ended and increasing metal shortages from 2024.” the analyst wrote. Copper prices will rise 20% this year and reach new all-time highs if Goldman Sachs' forecast becomes accurate again.