After making the biggest strides so far in the year, the copper hovered just below its seven and a half year peak on Thursday.
The metal’s futures on the London Metal exchange managed to clinch a 0.1% increase and settled at $7,678.50 per tonne. This is its highest since the $7,743 per tonne achieved in 2013.
The vaccine optimism, as Pfizer announced to roll out 50 million dozes until the year-end, bolstered the prices.
Similarly, the upbeat economic readings in the world’s biggest export of the malleable commodity provided support.
China exceeded both forecasts on Service Sector PMI and the Manufacturing PMI for November. This indicates that the country heads towards solid growth.
The weakening dollar also made its contribution, helping to increase the order for precious metals led by copper and gold.
Such an event makes it cheaper for buyers outside the United States, thereby increasing demand.
The looming approval of the next stimulus package is also likely to weaken the greenback further.
According to reports, US politicians are nearing a compromise as parties are now communicating their differences further.
Insiders noted that the relief package might likely stand at $900 billion in value, but none is yet confirmed by the government.
Copper has so far rallied by 76% since its lowest settlement in March.
It is primarily buoyed by robust orders from the Chinese market as the country experienced a better-than-expected economic rebound.
However, analysts warned that copper price may have reached its peak for now and the rally is now starting to lose its steam.
According to an expert in the field, most of the industrial metals have run to their appropriate price since hiking consecutively in the past weeks.
Gold is Regaining Strength
On the other hand, gold is making advances to regain its dominant position after falling to rock bottom.
The precious metal’s futures contract is set to end the weak with a 0.26% increase, settling at $1,845.80 per barrel.
Investors are currently making cautious bets on risky assets despite the vaccine developments and the stimulus package updates.
This is amid the still-fragile economic environment while the cases worldwide continue to grow at a steady high level.
The United States reported a high rate of hospitalization, which stood at 100,000. Some of the key states warned that they might resort to adopting mobility restrictions to help top curb the spread of the virus.
Such an event is quick to buoy the bullion being a non-yielding, safe-haven asset.
