URGENT UPDATE: Copper prices have dipped by 0.7% following a historic peak last week, prompting analysts at Goldman Sachs to issue a stark warning: any breakout in copper prices will be short-lived. This critical analysis comes as supply-demand dynamics shift ahead of 2026.
In a new report released today, Goldman Sachs highlights that the recent surge in copper prices was primarily fueled by a weaker dollar, optimistic growth forecasts for China, and a tightening physical market. However, they caution that investor enthusiasm is currently stretched, operating at the 99th percentile with low open interest.
While the market sentiment remains bullish, Goldman Sachs predicts that investors may soon start to withdraw from copper investments, especially as they foresee an exit beginning in early 2026. The firm emphasizes that while speculative excitement may drive temporary spikes, the physical market is not yet undersupplied, suggesting that any breakout will be fleeting.
Adding to the debate, Ivanhoe CEO Robert Friedland responded to the Goldman Sachs analysis, highlighting that global demand for copper stands at approximately 28 million tonnes. He underscores the urgent need for substantial investment in the U.S. grid, which could further impact copper demand in the near future.
This development is crucial for investors and industry stakeholders alike, as it shapes expectations for the copper market moving forward. With demand pressures and investment needs intensifying, the implications for the global economy could be profound.
Stay tuned for updates as this story develops, and watch for shifts in market dynamics that could affect copper prices in the coming months.
