Three ETFs to play the resurgence in copper prices theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
Commodities ETFs outperform as stocks retreat
Commodities exchange-traded funds rallied Tuesday as stocks slumped after their best one-day performance since June. The United States Copper Index Fund and the Invesco Optimum Yield Diversified Commodity Strategy No K1 Fund both gained 1.3% midday, while the United States Commodity Index Fund was up 1.2%. Continued investor interest in commodities signals a belief that the economic recovery is still underway, even if stocks are taking a breather. In the year to date, the copper ETF noted here is up 18.4%, and the Invesco diversified commodity fund has gained 14.4%, while the S&P 500 is up 3.5%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Copper Trading: Copper Trading Tips and Strategies 2021-03-14 05:00:00 Warren Venketas, Markets Writer
Copper Trading: Copper Trading Tips and Strategies
Copper is a highly tradeable commodity.
Copper is gaining more traction as an investment option along with various other alternatives.
As looked at in our primer for copper, copper prices tend to do well when emerging markets are growing as demand derives from building and construction.
Trading strategies for copper can include both technical and fundamental analysis.
Copper is a global commodity that has several key uses throughout industry and is highly correlated to economic growth. Copper trading is often used by hedgers and speculators as protection or exploitation of future price movements. Both individuals and institutions are able to gain exposure to copper and copper trading, making this metal popular choice within the commodity trading spectrum.
Meanwhile, Comex copper futures rose 4.2% to $4.069 per pound.
Copper demand and prices “should continue to benefit from a recovering global economy and [a]transition to ‘green’ energy sources,” Brent Cook, an economic geologist and senior adviser for the newsletter Exploration Insights, told MarketWatch.
The base metal is also finding support from the supply side. Metal miners suffered production slowdowns due to COVID-19 restrictions, and while supplies should pick up speed in 2021, the market will likely continue to be unable to meet demand in the years ahead.
Diving into Copper’s Supply and Demand Dynamics
Cook argued that estimates for supply increases range between 1.5% and 3.5% while demand is “projected to significantly exceed supply.” The supply deficit is projected to increase over the next five to 10 years “primarily due to a dearth of new copper deposit discoveries, the time line to bring a deposit into production,” which can reach for a large deposi
Global copper prices chased after gains in China where the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rallied to as high as 63,290 yuan, or $9,784, up almost 6% and touching its highest since September 2011, Reuters reports.
Fueling the ongoing rally in the industrial metal, China, the biggest metals consumer, has seen a surge in demand on its rebounding economy. Additionally, there were increased expectations of tight supply and a rush of speculative investment, with many analysts jumping on the multi-year bull run.
However, Commerzbank warned that the metals market may be too frothy, arguing that commodities were “completely detached from reality.” MarketWatch reports.