Copper Shortfall and Gold Downfall

The global markets are currently experiencing a copper deficit. Moreover, copper futures fell to a 0.3% low trading at $3.4260 a pound. This was a continuum of Wednesday’s 2% downfall, led by the Fed Reserves rate hike.

Recent reports continued to disappoint indicating that 2035 will experience a 1.5 – 9.9 million mt deficit of copper. With doubling demands copper deficits are expected to hit historic low levels. Incarseing demand levels are based on current translations for finding alternative sources of energy, which has led to increased copper consumption.

While on the other hand, the precious yellow metal also slipped lower despite steady demand. Spot gold was down by 0.3% trading at $1,669.56 an ounce, similarly, gold futures fell lower trading at $1,674.45. Though there was a rise in both instruments in the previous session.

As the dollar index touches a new peak in over two decades, trading at 111.58, other precious metals also traded lower. Silvert lost 0.1% while platinum was lower by 0.4%.

The lower copper supply and its better price position are the results of strikes in Chile’s Escondido. The world’s largest copper mine halting operations have already created a global manic for the shortage of the red metal.

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