MADRID (MarketWatch) -- Goldman Sachs on Tuesday raised its copper price forecasts, saying cyclical volatility will drive prices as macroeconomic concerns lessen. The investment bank sees depleting inventories in the next five quarters, "leading to periods of extreme volatility and price spikes." Goldman lifted its 3, 6 and 12-month copper forecasts to $8,500/mt, $8,800/mt and $11,000/mt. The prior targets were $7,900, $7,975 and $8,050, respectively. The investment bank also inroduced a full-year 2011 average price forecast of $9,300/mt, but said copper prices could exceed $13,500. Goldman is taking a profit on its long Dec. 2010 position, but recommends establishing a new long position for the Dec. 2011 contract.
CGG Price at posting:
41.5¢ Sentiment: Buy Disclosure: Held
