Synopsis: Copper is emerging as a key focus for 2026. Global brokerage Goldman Sachs highlights supply disruptions, growing demand from AI data centers, and green energy projects as key drivers. The firm expects prices may stabilize in 2026, with a bullish long-term outlook through 2035.
Following a record-breaking surge in precious metals this year, copper is emerging as the next major focus for commodity traders in 2026. The industrial Red metal climbed 3.2 percent last week and has soared over 35 percent in 2025.
The Analysts are drawing comparisons between copper and silver, noting that silver’s rally last year significantly outpaced gold’s historic bull run. They expect that the Copper Could Be the Next Big Winner Like Silver in 2026.
Silver has surged to a record Rs. 2.14 lakh per kilogram, marking a 138 percent rally so far this year as supply tightness and industrial demand drive the rally. The precious metal has posted its largest annual gain since 1979, rising over 68 percent in 2025, driven by robust global central bank purchases, safe-haven demand, and lower interest rates.
Copper Set for Multi-Year Rally Amid Supply and Demand Shifts
Analysts believe that supply constraints, combined with rising demand from AI, electrification, EVs, and the broader energy transition, could propel copper into a fresh multi-year upswing. Copper’s role in power, construction, manufacturing, and other industrial sectors makes it a key beneficiary of these trends.
At the same time, price swings in base metals are becoming increasingly exaggerated due to thin liquidity, leaving the market vulnerable to sudden moves as the year-end approaches. This volatility could create both risks and opportunities for investors and industries reliant on copper.
Can Copper Be the Next Big Winner Like Silver in 2026 as per this Global Brokerage ?
Goldman Sachs On Copper
Copper prices are on track for their strongest annual performance in over a decade. Several key factors are driving this surge in demand and market value.
- Mine Disruptions Limiting Supply: Global copper production has been affected by disruptions in major mining regions. The strikes, logistical challenges, and environmental regulations have reduced the available supply, putting upward pressure on prices.
- Investment Shift from Other Metals: Investors and traders are reallocating funds from other metals into copper, particularly in the U.S. This shift in market sentiment has boosted copper purchases, contributing to rising prices.
- Growing Demand from AI Data Centers: The expansion of artificial intelligence infrastructure, including data centers, is driving copper demand. Copper is a critical component in electrical wiring and cooling systems, making it essential for these high-tech facilities.
- Boost from Green Energy Projects: Copper plays a key role in renewable energy systems, such as electric vehicles, solar panels, and wind turbines. As governments and companies increase investment in green energy, demand for copper continues to rise.
Copper Prices Seen Stabilising in 2026 Despite US Tariff Uncertainty
Goldman Sachs predicts that copper prices will stabilize in 2026, averaging $11,400 per ton. This is because uncertainty over US tariffs on refined copper may continue until a potential announcement in mid-2026, with tariffs possibly taking effect in 2027.
The bank also expects copper to do better than aluminium in 2026. China’s overseas efforts to secure critical metals will likely increase aluminium production, making copper more attractive, and copper recently reached a record $11,952 per ton on the London Metal Exchange.
Goldman Sachs Projects Copper to Reach $15,000 per Ton by 2035
Even with the expected price stabilization, Goldman Sachs still considers copper its favourite industrial metal. This is because electrification (like electric cars and energy storage) drives about half of copper demand, and copper mining has special supply limits.
Goldman Sachs maintains a bullish long-term outlook for copper, forecasting that prices could rise to $15,000 per ton by 2035. This projection reflects expectations of growing demand for copper. Despite short-term uncertainties, such as potential US tariffs on refined copper, the bank’s long-term view underscores copper’s critical role in future industrial and technological growth.
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