(VIANEWS) – Copper (HG) has been up by 11.16% for the last 21 sessions. At 19:53 EST on Tuesday, 24 January, Copper (HG) is $4.25.
Why is Copper Future Going Up?
Copper has become a critical metal as the world shifts to clean energy. It has advanced applications in plumbing, electric vehicles, and machinery. And as more countries commit to net-zero emissions by 2050, the demand for copper will grow. Traders should take note of these factors when betting on copper prices.
Copper is used to wire solar panels. It is also widely used for wiring in electric vehicles. The electric vehicle market is growing rapidly. Increasing global growth will drive more manufacturing, which will lead to more copper demand.
Developing economies, like China, are building infrastructure. This infrastructure spending has stimulated the economy. Nevertheless, there is a lack of new copper deposits. Getting approvals for new projects is becoming more difficult.
Demand for copper is expected to exceed supply for the next decade. While the market is trading in positive territory, traders need to be wary of the risks of a slowdown. If economic growth slows, central banks could begin to ease monetary policies. That could cause a spike in industrial metal prices.
Some analysts warn of a copper shortage. For example, a recent study by S&P Global, an industry-funded report, states that increased copper use in the transition to clean energy will double the demand for the metal by 2035.
The World Bank predicts 4% global growth in 2021. Fitch Solutions forecasts a slight deficit in 2023.
Copper has a high correlation with economic growth. When the economy is recovering, inflation is likely to increase. Higher inflation expectations also encourage economic activity.
Today’s last reported volume for Copper is 679, 99.99% below its average volume of 15225216386.95.
Copper’s last week, last month’s, and last quarter’s current intraday variation average was 0.25%, 0.81%, and 1.57%, respectively.
Copper’s highest amplitude of average volatility was 1.22% (last week), 1.20% (last month), and 1.57% (last quarter), respectively.
- WTI crude oil forecast: continues to attempt breakout – 24 January 2023. According to DailyForex on Tuesday, 24 January, "The West Texas Intermediate Crude Oil market has rallied slightly during the trading session on Monday, as we continue to try to break above the highs of the previous week. "
More news about Copper (HG).