Copper continues to record impressive performance, supported by global recovery hopes and supply woes.
More developed countries have reported significant recoveries in the past weeks, with the United States and China on the lead.
Both countries are big importers of the commodity, used as one of the main components of industrial activities.
Front-month copper price hikes to its highest settlement in the last ten years after a 2% addition.
The contract currently trades at $9,795.00 per tonne in New York Comex, bringing along its top producers on the bandwagon doing uphill.
Shares of the industrial metal’s main producer, Glencore, hiked by 3.3%. Meanwhile, its counterpart, Freeport-McMoRan added a higher percentage of 6.6%.
Shares of other top producers, namely Vale, BHP, and Rio Tinto, are all in the green during the session. Each added an average of 1.5%.
The recent jump in prices is also brought by the strike among port workers in Chile. This, in turn, ends up affecting the metal’s global supply chain.
The country, accounting for about a quarter of the world’s copper supplies, staged a stricter production curb earlier amid the growing number of daily cases.
The administration locked the nation’s borders from international and domestic mobility in an attempt to mitigate the worsening Covid situation.
On top of this dilemma, Chile’s President Sebastian Pinera moved to block a bill that allows citizens to make early withdrawals from pension funds.
This incumbent situation at hand with the growing threat of the pandemic among Latin American countries is all helping the precious metal’s prices up.
In a bullish scenario, analysts from Goldman Sachs noted that prices could reach as much as $15,000,00 a tonne by the end of the year.
Gold Trims Down
In an update on gold, prices edged down on Tuesday morning in Asia. Investors remain apprehensive on future monetary policy decisions of developed nations.
The Bank of Japan kicked off the monetary policy releases this week and announced to keep interest rates at current levels.
The BOJ noted that such a measure is necessary to keep the country’s financial standing in balance, especially now that cases are surging.
Investors are currently monitoring the decision of the Federal Reserve scheduled for release later in the week.
Gold futures fell by 0.11% to $1,778.10 per ounce, still close to the critical psychological ceiling of $1,800.00 per ounce.
In an update on other metals, silver is down by 0.1% for the day, while platinum added 0.3%.