- The price of the metal has reached all-time highs this year
According to the analysis, copper prices could fall towards the end of the year if the US Federal Reserve begins to cut interest rates.
The price of the metal has reached record levels this year and has reached more than $10,000 a ton.
But it is more likely to fall to between $7,000 and $7,500 a ton by the end of this year, Liberum analysts said.
Downside risk: Copper prices could fall by year-end if US Federal Reserve starts cutting interest rates, analysts say
This contrasts with consensus forecasts that it will remain above $8,500.
Like gold, the red metal is increasingly seen as a hedge against inflation.
But Liberum maintains that once inflation is under control in the Western world and the United States begins to lower interest rates, copper’s appeal is likely to diminish.
The metal is also a fundamental metal for the ecological transition and for industries such as construction.
But a growing number of analysts believe that the increased need for copper in the green revolution has been “priced in,” meaning its value is already reflected in current prices.
