The commodity market remains under pressure as equities are gearing up for a rally on the heels of a Trump presidency. The stock market kick-started a bull run after his victory in November, and the trend continues into 2025. On the other hand, gold prices have remained relatively stable but might head south when the equities market goes north. Copper is also on a slippery slope as the commodity market could soon be engulfed in a trade war ignited by Trump.

copper prices commodity market 9076
Source: Business Insider

Trump threatened several countries of tariffs if they didn’t fall in line with his Make America Great Again agenda. His threats included the need for emerging economies to continue using the US dollar and to reduce tariffs on American imports. The President-elect threatened tit-for-tat policies when he assumed office this month. Therefore, the commodity market and assets, including copper, will be caught in the crosshairs of a trade war.

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Commodity Market: Can Copper Climb Above $10,000 in 2025?

copper bars commodity market
Source: Shawn Hempel / Adobe Stock

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The latest price predictions from leading global investment banks like Goldman Sachs and Morgan Stanley have painted a bearish picture for copper prices in the commodity market. Goldman Sachs, which was bullish on copper’s prospects during Q1 of 2024, has slashed its price outlook by nearly $5,000. The investment bank predicts that the metal could reach a maximum high of $9,800 in 2025.

Coming to Morgan Stanley, the global bank wrote that copper prices could hit $9,500 by the end of 2025. None of these predict that the metal could soar above the $10,000 range this year. Even the Royal Bank of Canada (RBC) estimated that copper could fall much lower to the $8,800 level in 2025. The development could add strain on the commodity market as leading metals fail to deliver.

In conclusion, the stock market could deliver better returns in 2025 than the commodity market. Copper could dip or remain stagnant this year, giving little to nothing in return. As the trade wars intensify under Trump, chances of it heading south remain high.

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  • Commodity
  • Commodity Markets
  • Copper