Wall Street investment bank Goldman Sachs (NYSE: $GS ) has lowered its 2026 copper price forecast due to softer demand expectations amid weaker global economic growth.

Goldman Sachs now expects coper's price to average $12,650 U.S. per tonne in the months ahead, down from $12,850 U.S. previously.

Despite near-term weakness, Goldman remains bullish on the long-term outlook for the red industrial metal due to electrification and its use in artificial intelligence (A.I.) data centres.

The investment bank now expects the global copper market to run a surplus of 490,000 tonnes this year, up from its previous estimate of 380,000 tonnes.

The surplus and lower price are due to Goldman Sachs' projecting a 0.4 percentage point hit to global economic growth from the energy price shock stemming from the Iran war.

However, Goldman Sachs expects copper's price to find support and quickly recover if conditions and the global economy stabilize.

As such, Goldman Sachs kept its long-term forecast for coper intact, projecting that its price will rise to $15,000 U.S. by 2035.

GS stock has risen 84% in the last 12 months to trade at $855.90 U.S. per share.