Goldman Sachs' commodities team has said copper, having already passed the $7,000 a tonne mark to a three-year high, could move as high as $8,000 a tonne by 2022.
Questioning whether the current rally was down to market fundamentals or merely speculatively-driven, Goldman Sachs said it believed it was the former.
Current prices for the industrial metal reflect three market fundamentals, the broker said:
- Strong and synchronous global growth
- US dollar depreciation
- Repeated disappointments in copper mine supply
Goldman analysts said they expected global copper demand to rise 2.5% in 2017 and 1.8% year-on-year on average to 2022 - forecasts it had raised.
"In essence, we now think that global growth has more room to run and copper will benefit from the synchronised pick-up in world economic activity," said analyst Hui Shan.
The broker also said fears were easing about slowing growth in China - the biggest global consumer of copper.
Since the beginning of the year the dollar has fallen 7.7% on a trade weighted basis and many forecast it to move lower still with the European Central Bank and the Bank of England both moving to a tightening bias.
The dollar is an important factor in commodity prices, as most are denominated in the US currency. If the dollar moves lower, it make the metal cheaper to buy in rival currencies.