FOMO playing out in copper; industrial metal hits new peak

LONDON: Copper raced to a new record peak on Monday as investors worried about missing out on further gains while some industrial users bit the bullet after waiting for lower prices.

Three-month copper on the London Metal Exchange climbed to an all-time high of $10,747.50 a tonne after first breaking through a decade-old record on Friday.

It pared gains and was up 0.5% at $10,470 a tonne by 1345 GMT.

“Momentum is king, it’s a hot potato right now, and a lot of investors are looking at the market with despair if they’re not involved and they’re looking to get involved,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Speculators were gunning for the next round number and targeting $11,000, while some physical users who had been waiting for lower prices were throwing in the towel, he added.

“A buyers’ strike can only work for so long, so at some point you just have to capitulate and get back into the market.”

Other players were caught short in the options market and were covering their positions, Alastair Munro at Marex said in a note.

Copper also hit a record high on the Shanghai Futures Exchange as the most-traded June copper contract closed up 4.8% to 77,720 yuan ($12,094.62) a tonne.

Bullish investors bet that demand for copper will increase further as the world economy recovers from COVID-19 and as investments into green energy sectors ramp up, while prices were also supported by tight supply in the concentrate market.

About Author

Related posts

Amazon Trade Ideas

German union calls for Amazon workers to strike on ‘Prime Day’

Amazon (NASDAQ:AMZN) is trading down 0.07% at 3486.90 A German trade union called on workers at seven Amazon (NASDAQ:AMZN)warehouses to go on strike on Monday for several days to coincide with the global Prime Day promotion. Verdi said it was organising the three-day strike as part of a long-running...

Read More
Top 5 Stock To trade Today

Top 5 Stock To Watchout Today 21 -June-2021

TOP 5 STOCKS TO WATCHOUT:- 1.GOLDMAN SACHS:-Goldman Sachs has launched its transaction bank in Britain, the firm said Monday, expanding the business after launching in the United States last year as it looks for steadier sources of revenue beyond its investment bank. The bank is to offer companies in...

Read More

Leave a Reply