Commodity Update, Friday, 31st of July, 2020
Copper prices have extended recent gains, supported by the robust industrial demand from its top consumer China, coupled with supply chain worries in Chile, the world’s largest producer of the red metal.
The prices of Copper, which is used as an index of economic health by investors, climbed at $3 per pound, rebounding almost 50% from their multi-year lows in March, recovering all losses caused by the coronavirus pandemic and trade war combined.
The massive rally in the prices of the base metal was supported from a continued cyclical recovery in major economies such as the US and China after the pandemic fallout, together with the weaker US dollar, which makes dollar-denominated metals cheaper for holders of foreign currency.
However, copper’s rally has recently lost some steam as physical demand subdued with the on-going spikes in COVID-19 cases around the world, the escalation of US-China tensions and worries over the economic recovery in China.
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