According to Goldman Sachs, they see a large potential for commodities to outperform again this year. Last year only cryptocurrencies outperformed commodities and Goldman Sachs to significant market imbalances to drive commodity prices again. Whether it is constant demand or supply not being provided commodities have reasons to rally. Copper is one commodity that could be due for some gains. The present and expected further easing in China’s monetary policy should be supportive for growth and therefore copper demand. Let’s take a look at the seasonal demand for copper in February.

From Feb 01 – Feb 24 Copper has gained 11 times in the last 15 years. The average return has been an impressive 4.20%. Last year saw gains of over 20%! Will that be repeated again this year?

Major trade risks

  • The main risk to this seasonal pattern is if China reverses its easy monetary policy.

  • Another key risk will be the specific copper supply and demand issues.


Learn more about HYCM

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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