Commodity Trade Mantra

Posts Tagged ‘Industrial Metals’

Is Dr. Copper Getting Started on Another Decade-Long Bull Run?

Copper posted new 2017 highs yesterday, extending its breakout. It’s now sitting on year-to-date gains of almost 30%. Now Dr. Copper is back on the move – and we’ve already reserved our seats on the bandwagon. I don’t know if copper is just getting started on another decade-long bull run or if it’s just enjoying a short-term rally. Either way, we’re willing to ride the new trend to gains.

Copper, Zinc & Nickel Prices Leap - Base Metals Rally as Bulls Hungry for More

Copper is looking strong, apparently due in part to China stockpiling it. Right now it is overbought and has resistance to work its way through, so periods of consolidation are to be expected. Base metals have been lifted by sustained demand growth and restrained supply. Of all the base metals, zinc exhibits the most bullish fundamentals, with LME inventories that are running near empty.

With Fundamentals in Place, a Breakout & Compelling Technicals - Watch Gold Take-Off

We think the breakout in gold is here, the fundamentals are in place, and the technicals are compelling. The technical situation, in the dollar, flips off to the technical situation with the gold extremely well right here. If you get above $1,300 here, then you’ve got $1,377, and beyond that, this is a new gigantic structure type of bull market going on where gold will be going to new all-time highs.

Rate Hikes Help Industrial Metals Rise Fastest - Silver, Copper & Zinc to Benefit Most

There aren’t many constants in the world of investing, and certainly not many things that rise in value like clockwork. In times of rate hikes, industrial metals rise fastest, and in today’s world, the type of metals in highest demand by China are going to rise the most. Silver is one metal that’s poised to move up & Zinc is trading for less than half of what it did in 1980.

Fundamental & Technical Views in The Commodity Markets

Let’s take a look at some key commodity components to see what’s going on right now & how it might be helpful. Historically, we tend to see strong moves in commodities with converse movements in the US Dollar. If you have a good scent on where Commodities are headed & that is confirmed with US Dollar moving in opposite directions, you have found a good theme that could trade & ride for a while.

Commodities that will Continue Industrial-led Rebound in 2017

In 2016, commodities began the recovery from a five-year bear market. As producers across the complex have scaled back supply, markets appear to be rebalancing. We believe that this rally will be extended over the next few years, supported by supply and demand dynamics, government action and investment demand as investors seek inflation protection.

Silver Prices on Fire - Can hit $25 an ounce by the End of 2016

Silver has outshined its sister metal since the U.K.’s decision to leave the European Union sparked turmoil in global equities markets, and the rally could lift the white metal to a three-year high. Silver prices are set to surpass some analysts’ $22 predictions from earlier this year & talk of $25, $27, & even $32 have emerged. Those levels would take prices to their highest since at least 2013.

Can Silver keep Soaring on Lack of Market Risk Appetite?

A difference of opinion is emerging in the markets over whether silver can extend its recent strong gains. The price of silver rose more than 6% on Friday and another 4% early Monday to top $21 per ounce for the first time since 2014. The uncertainty in Europe caused by Brexit will continue. Add into the mix fears over Italian banks, & investors will continue to flock to silver & other precious metals.

Commodities Plunge To New 16 Year Low; Oil Slides On Venezuela Warning

The Bloomberg Commodity Index is set for its worst year since the financial crisis, plunging 23 percent. It’s not just the metals though: crude oil also started the session off on the wrong foot, following this weekend’s comments from Venezuela that oil prices may drop to as low as the mid-$20s a barrel unless OPEC takes action to stabilize the market.

Copper Prices Decline To Levels Below Cost of Production

There are various estimates for what the Marginal Cost of getting Copper out of the ground is before supply is taken offline completely. But it is reasonable to assume that Copper is currently being priced well below the long term Production Cost of Processing the Industrial Metal. The $2 Copper could well be setting up for an ample short covering rally before 2015 ends.

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