Bank of America raised its long-term copper forecast by 20% to $12,000 per ton, citing ongoing supply issues. The bank also trimmed its 2027 aluminum forecast and flagged a bearish outlook for gold on higher interest rates and a stronger dollar.
Bank of America strategists raised their long-term copper price forecast by 20% to $12,000 per ton, or $5.44 per pound in 2026 dollars, according to a commodities update report. The bank pointed to ongoing supply issues as the main driver behind copper's continued price strength.
The revision follows more than 12 months of policy and other market surprises, with risks of volatility from war in the Middle East still persisting. Strategists also flagged a possible energy-induced demand shock or a pause in data center capital expenditures as additional risks.
Elsewhere, the bank made minimal other changes to its commodity forecasts. It lowered its 2027 aluminum price forecast by 5% to $3,625 per ton. Bank of America said higher interest rates and a stronger dollar create a bearish outlook for gold prices.
Source: Investing.com
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