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Goldman Goes Cold on Copper as Power Crisis Sparks Bearish Pivot

  • Metal is now 40% below where the bank’s analysts expected
  • Energy crunch centered on Europe threatens global demand
Updated on

Copper has lost one of its most influential cheerleaders, after Goldman Sachs Group Inc. chopped its near-term price forecasts in anticipation of a sharp slump in consumer spending and industrial activity as Europe’s energy crisis deepens.

Goldman’s analysts have been among the most bullish voices on commodities, and have warned that copper in particular could become one of the tightest markets ever seen. But with investors selling the metal in droves and prices currently 40% below the bank’s expectations, Goldman is warning that the slump could still have much further to run.