Goldman Sachs Raises US Inflation Forecast as Dollar Weakens

Goldman Sachs has raised its near-term and long-term copper price forecasts, citing a de-escalation in global trade tensions and strong Chinese demand as key drivers. The bank now expects copper prices to range between $9,330 and $9,150 per tonne in the second and third quarters, up from previous estimates, due to high U.S. imports depleting stocks outside the U.S. and tightening London Metal Exchange spreads. While China's demand has remained robust, a slowdown is anticipated in the third quarter as new tariffs take effect. Goldman warns that a delay in the U.S. decision on copper tariffs until late 2025 could disrupt trade flows and create a supply crunch outside the U.S., especially impacting China. Looking ahead, analysts foresee the copper market moving into a supply deficit in 2026, propelled by electrification sector demand and limited mining growth, potentially driving prices above $10,500 per tonne by the end of that year. Benchmark copper prices have recently reached their highest levels in a month.