Tuesday, July 25, 2017
Don't look now but copper is breaking out
The long term chart seems to show a breakout to the upside.
Copper prices touched a five-month high Tuesday amid signs of stronger Chinese demand and lingering supply-side concerns.
The base metal jumped 2.21% to $6,167 a metric ton Tuesday. Gold, meanwhile, fell 0.31% to $1,250.50 a troy ounce.
The International Monetary Fund revised its growth outlook for China, the world's largest copper consumer, up 0.1 percentage point to 6.7% late Monday.
"Economists have raised China GDP forecasts, that's been steadily positive for sentiment and helps support prices, that's one of the key drivers," said Warren Patterson, commodities strategist at ING Bank.
It's not just China, many emerging and frontier markets are growing quite nicely. In addition, the US and Europe are also growing.
I would grant that there have been strikes at copper mines also. Nevertheless the metal has broken out to the upside. It will be interesting to see if the momentum will continue.
My holdings in: Nevsun and Altius Minerals should benefit