Bank Of America Sees Gold At $3,000, Warns Of A Copper Supply Crisis: Metals 'Dance To Their Own Tune'
Portfolio Pulse from Piero Cingari
Bank of America projects gold prices to reach $3,000 per ounce by 2025, driven by strong demand from central banks and anticipated investor return as interest rates drop. The bank also warns of a copper supply crisis, predicting prices to hit $12,000 per tonne by 2026 due to green technology investments and global economic recovery. Alamos Gold Corp. (AGI), Freeport-McMoran Inc. (FCX), and Hudbay Minerals Inc. (HBM) ratings were upgraded to Buy, while Tesla Inc. (TSLA) is noted for reducing copper use in its latest EV technology.
April 09, 2024 | 2:44 pm
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POSITIVE IMPACT
Bank of America upgraded Alamos Gold Corp. to Buy from Neutral, anticipating gold's price rise to $3,000/oz by 2025.
The upgrade reflects BoA's bullish outlook on gold, driven by strong demand and potential rate cuts, directly benefiting AGI.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Bank of America upgraded Freeport-McMoran Inc. to Buy from Neutral, in response to a predicted copper supply crisis and price rally.
The upgrade is based on BoA's forecast of a copper supply crisis and significant price increases, benefiting FCX as a major producer.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Bank of America upgraded Hudbay Minerals Inc. to Buy from Neutral, citing the impending copper supply crisis and expected price surge.
The upgrade reflects BoA's positive outlook on copper prices due to a supply crisis, which is expected to benefit HBM as a copper producer.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
Tesla Inc. is noted for its innovation in reducing copper use in its latest EV technology, amidst a forecasted copper supply crisis.
While TSLA's reduction in copper use showcases innovation, the broader copper supply crisis may not directly impact its short-term stock performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70