Will Copper’s 135% rally break the all-time high?
The price of copper has been a monster rally since the lows of the pandemic in 2020. Only a year later and the metal dubbed ‘the new oil’ is up by more than 135% and threatening to break to a new all-time high.
The demand for the metal has caused investment banks such as the Bank of America to state that the world is running out of copper due to supply deficits. They highlight that inventories are now at levels seen 15 years ago which can only cover three weeks of demand.
As the global economy starts to reopen, a huge surge in demand for copper is expected, potentially driving prices up even further.
Source: Admirals MetaTrader 5, COPPER, Monthly - Data range: from Jan 1, 1990, to May 6, 2021, performed on May 6, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
The long-term price chart of copper shown above shows a very choppy trend. However, the recent surge higher in the metal has occurred before, most notably from 2001 to 2006 and 2008 to 2011.
With demand increasing and supply levels remaining constrained, analysts are forecasting a break to new record highs and the start of a new commodity super cycle, making it a metal to watch.
Did you know that you can use the Trading Central Technical Ideas Lookup indicator to find actionable trading ideas on Amazon’s share price and thousands of other instruments across Forex, stocks, indices, commodities and more?
You can get this indicator completely FREE by upgrading your MetaTrader 5 trading platform provided by Admirals (formerly Admiral Markets) to the exclusive Supreme Edition!
Start your free download by clicking on the banner below:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.