Goldman Sachs flags risks to $15,400/t copper price forecast for 2027

Nov 12 (Reuters) - Goldman Sachs said on Thursday it sees downside risks to its 2027 copper price forecast of $15,400 a metric ton after the US midterm elections, citing AI-related positioning and lower US tariff expectations.

• "The main risk to our forecast stems from positioning rather than physical demand," Goldman Sachs said in a note, referring to AI-related market exposure

• Investors have become more cautious about the AI boom amid concerns that a Democrat-controlled Congress could slow AI investment and data-centre expansion

• Benchmark three-month copper on the London Metal Exchange was up 0.2% at $13,612 per ton but headed for a weekly loss amid an AI rout MET/L

• If positioning stays at current levels, copper prices could average around $14,600/ton in 2027, Goldman Sachs said

• Goldman Sachs said lower tariff expectations put its US stockbuilding assumption at risk but highlighted that the Democratic sweep does not eliminate the tariff risk

• "We estimate copper would average around $14,500/ton in 2027, with further downside if most of the US inventories built up this year flowed back to the rest of the world," it said