BofA raises long-term copper forecast on tightening supply outlook
BAC•Bank of America raised its 2031 copper price forecast by 20% to $13,577 per metric ton, citing constrained supply outside the United States and tightness in China. It also outlined forecasts for precious metals, coal and lithium.
1. Copper outlook
Bank of America raised its 2031 copper price forecast by 20% to $13,577 per metric ton, citing continued inflows of copper into warehouse financing deals that constrain availability outside the United States and a tight domestic market in China. The bank said the Iran war could limit upside for base metals in the short term, while supply-side pressures are expected to support prices over the longer run.
2. Precious metals
The bank said gold could fall toward $3,750 an ounce in the fourth quarter of 2026. A rally in oil prices to $150 a barrel could drag average gold prices to around $3,500 an ounce next year. It said silver is likely to track gold more closely after weaker solar-panel demand, platinum should find support from a supply deficit, and palladium is expected to remain under pressure from oversupply and weaker automaker demand.
3. Other commodities
Bank of America expects coking coal to remain in deficit this year and next because of production headwinds in China, supporting prices near $250 a ton. It forecast a small lithium surplus next year as output rises and said higher cobalt prices may encourage carmakers to reduce their use of the battery metal.
