Goldman Sachs lowers copper price target, bullish on gold

Copper prices (HG=F) are sliding after Goldman Sachs lowered its price target on the precious metal commodity, telling investors to "go for gold" (GC=F) in a recent analyst note

Yahoo Finance senior business reporter Ines Ferré checks out the commodities market, examining gold's price action and recent ETF inflows as more central banks buy up gold.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Luke Carberry Mogan

Video Transcript

Copper is no longer a buy that's going to the Goldman Sachs team.

The firm is now expecting copper to hit an average price of 10,100 per ton by year end.

That's below its previous expectation of 15,000.

That news is dragging down mining stocks and for more on metals, we're bringing in Yahoo Finance senior markets reporter Inez for Inez.

Hey Josh.

Yeah.

As you just mentioned, Goldman Sachs are basically lowering their price target on copper.

And if you just take a look at the charts right now, we are seeing copper that's at the near the lows of the session right now.

Down almost a 3% a year to date chart will show you that you still have copper up more than uh 5%.

But it was really in May when copper really peaked when we saw those all time high copper prices.

And you were, there was a lot of talk about that higher demand utility upgrading their grids.

But since then, copper has been on a decline and then just taking a look at what's been happening with gold prices since gold pricers prices recently uh reached uh highs in August, you're looking at gold that hasn't moved that much today.

So if you take a look at the bigger picture, and if you look at the markets that have declined overall, you are seeing that copper has declined over the last couple of sessions, but not that much.

You're only looking at it uh down 1/10 of a percent.

And Goldman Sachs also in a note said, go for gold, basically saying that the commodity where they see the highest confidence in near term upside is in gold with Goldman maintaining its 2700 price uh target on gold per ounce by early 2025.

And basically saying that central banks buying go uh uh gold, you'll recall that in Q one, central banks bought a record amount of gold for Q One.

Also Westerners getting into the game with, with inflows going into gold back.

ETF S first you saw that in Europe.

Now we're seeing it here in the US in North America as investors expect a uh reduction in rates at the fed meeting this month.

The catalyst for what's next for gold analysts are saying is going to be that fed meeting whether it's going to be a 50 basis point cut, a 25 basis point cut point cut.

And of course, the jobs report uh this Friday which could determine that guys