(VIANEWS) – Copper (HG) has been up by 7.9% for the last 10 sessions. At 04:50 EST on Thursday, 8 December, Copper (HG) is $3.86.

Why is Copper Future Going Up?

Investing in copper futures is a great way to bet on the price of copper. While it may seem like a more risky bet than other commodities, it is actually quite easy to make. Buying a common stock of copper companies is an alternative to futures trading, but it is important to understand other factors that can affect a stock’s value.

In the past, copper prices moved with the business cycle. However, in recent months, prices have followed China’s growth rebound closely. Eventually, the price of copper fell back into Q3 on concerns about the Federal Reserve tapering. This pullback marked the red metal’s biggest quarterly drop since 2011, but the red metal has bounced back and is now logging the largest quarterly gain since 2011.

Currently, the world’s largest consumer of copper is China. The country’s economy is still growing, but it is facing several headwinds. Those include higher raw material prices, slower export growth, and sharply higher corporate bond yields. These challenges are expected to keep the market tight.

The rising demand for copper is driven by a number of factors, including the clean energy transition. More governments are taking action to address climate change. In addition, electric vehicles are accelerating their adoption. This bodes well for copper.

Other reasons for copper’s strong performance include a reflationary environment, new industries, and traditional infrastructure needs. In fact, economists are expecting the global economy to experience a reflationary environment in 2021, which would trigger inflation and economic growth.

Volume

Today’s last reported volume for Copper is 10652, 99.99% below its average volume of 15820335889.61.

Volatility

Copper’s last week, last month’s, and last quarter’s current intraday variation average was 2.06%, 0.05%, and 1.78%, respectively.

Copper’s highest amplitude of average volatility was 2.06% (last week), 1.65% (last month), and 1.78% (last quarter), respectively.

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