BlockBeats news: On Thursday, January 29, copper prices hit a new all-time high of over $14,000 per metric ton as speculators continued to expand their buying positions, driven by strong demand expectations and supported by a weaker U.S. dollar and geopolitical concerns. They ignored warnings from some analysts that high prices could suppress physical demand from industrial consumers and that the current supply and demand fundamentals do not support this price level.
The London Metal Exchange's benchmark three-month copper contract surged as much as 7.9% during Asian trading hours, reaching a record high of $14,125 per ton. Neil Welsh, an analyst at Britannia Global Markets, stated in a report: "Driven by aggressive long speculative trading, copper prices recorded the largest single-day gain in years. Investors are rushing into base metals, anticipating stronger U.S. economic growth and increased global spending on data centers, robotics, and power infrastructure."
A weaker U.S. Dollar Index also provides support for metal prices. The Dollar Index nearing a multi-year low makes dollar-denominated commodities cheaper for buyers using other currencies. (Gold100)