Bank of America has raised its long-term copper price forecast by 20% to $12,000 per ton, equivalent to $5.44 per pound in 2026 dollars, according to a commodities strategy update from the bank.
The strategists attributed the revised forecast primarily to continuing supply constraints, which they said have contributed to copper’s recent price performance.
The adjustment follows more than a year of policy developments and other market events that have affected the commodities outlook. Bank of America also pointed to the continuing potential for volatility related to the conflict in the Middle East.
The bank identified several factors that could affect its copper outlook, including the possibility of an energy-related shock to demand and a pause in capital expenditure on data centres.
Bank of America made relatively limited changes elsewhere in its commodities forecasts. The bank lowered its 2027 aluminium price estimate by 5% to $3,625 per ton.
For gold, the strategists said higher interest rates and a stronger US dollar were creating a bearish price backdrop.