One of the nicknames for Copper is, ‘Dr Copper’. This is because the health of the global economy is often signaled by how copper prices are doing. When the global economy is growing, copper tends to gain in prices. On the other hand, when the global economy is slowing, copper prices tend to fall. Investors are carefully weighing up the Fed’s next move ahead of their next rate meeting. Will the Fed keep hiking rates to contain inflation, but impact growth expectations? Or will the Fed signal a pause in rate hikes and help lift risk sentiment. This sentiment ebbs and flows with the latest central bank speakers and inflation expectations. However, if there appears to be a reason for positive risk sentiment then take a look at copper’s very strong seasonals.

Between June 22 and June 30 copper prices have gained 18 times and fallen 7 times in the last 25 years. The average gain has been 2.12% and the largest loss was -4.86% in 1997. The largest gain was a stunning 15.23% profit in 1999. Will copper prices rise again?

Major Trade Risks: Any very negative sentiment that results in risk-off trading can result in copper prices falling. Any specific supply issues for copper can also impact copper prices.


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High Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.

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