Tuesday, October 5, 2010

Goldman (NYSE:GS) Bumps Up Copper Price Outlook

Goldman Sachs (NYSE:GS) increased its estimates on copper prices going forward, saying shrinking concerns over macroeconomic conditions will push up prices.

Cyclical volatility was specifically cited by Goldman, saying inventories over the next five quarters will plunge, "leading to periods of extreme volatility and price spikes."

For three months, the price estimate for copper was increased from $7,900 to $8,500/mt; for six months, from $7,975 to $8,800/mt; and for 12 months, from $8,050 to $11,000/mt.

Although Goldman said they're taking profits on their long December 2010 position, they advise clients to take a new long position for the December 2011 contract.

No comments: