Copper Bullish Continuation: Q2 Top Trading Opportunities
2021-04-14 16:30:00
Richard Snow,
Markets Writer
Copper Set Up for Bullish Continuation
Advertisement
Copper has witnessed phenomenal price appreciation since March 2020 when the pandemic surged, resulting in worldwide lockdowns. The metal has been supported by unprecedented monetary policy, ultra-low interest rates and more importantly, low or negative real yields.
Such an environment makes non-interest yielding investments like copper, gold, silver and platinum more attractive as the potential for price appreciation remains.
However, as governments attempt to turn the corner in 2021 through the rollout of Covid-19 vaccines, hope is on the horizon. Global GDP is forecast to rise to 5.5% in 2021 according to the IMF while lockdown restrictions ease. Adding to this, US manufacturing PMI figures indicate a strong recovery in factory output – with copper making up a vital components in electronics, autos and aerospace.