BlockBeats News, January 29, Thursday, as speculators were inspired by strong demand expectations and supported by a weakening dollar and geopolitical concerns, continued to expand buying pressure, and copper prices hit a historical high of over $14,000 per ton. They ignored some analysts’ warnings that the high price would dampen physical demand from industrial consumers, and the current supply-demand fundamentals do not support this price level.
The London Metal Exchange’s benchmark three-month copper futures surged 7.9% during the Asian trading session, hitting a record high of $14,125 per ton. Neil Welsh, an analyst at Britannia Global Markets, said in a report, “Driven by intense speculative trading on the long side, the copper price saw its largest single-day gain in years. Investors are flocking to base metals, expecting strong U.S. economic growth and increased global spending on data centers, robotics, and power infrastructure.”
A weakening U.S. dollar also provided support for metal prices. The U.S. dollar index approached multi-year lows, making dollar-denominated commodities cheaper for buyers using other currencies. (FX168)
