Just in: Goldman Sachs told clients to go long copper just a day before the price crashed. pic.twitter.com/htDRa5TPZ4
— Markets & Mayhem (@Mayhem4Markets) August 1, 2025
Goldman Sachs told clients to buy copper just one day before the price crashed. On July 29, the bank recommended short-term call options, betting on a 50% tariff on copper imports. The next day, President Trump announced a limited tariff excluding refined copper products. This caused U.S. copper prices to fall over 22% within hours, the largest single-day drop on record.
“Goldman Sachs misjudged the tariff impact and sent an email to clients titled ‘No copper tariff. Mea Culpa.’”
https://www.investing.com/news/stock-market-news/goldman-sachs-missteps-with-copper-tariff-prediction–bloomberg-93CH-4166632
The sharp drop surprised many after a rally. Goldman expected broader tariffs to support prices. The narrower policy led to losses for clients who followed the advice.
This shows even major banks can miss sudden market shifts tied to political decisions. It raises questions about relying on expert forecasts when policies can change fast.
