The commodities market is seeing heavy bullish sentiment as silver, copper, gold and the US dollar set new highs. On Tuesday's opening bell alone, copper prices shot up 94.71 points and rose 0.98% in day trading. Buying pressure for copper increased significantly as investors' risk appetite soared in global commodity markets.
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The price of copper reached the psychological limit of $10,000 per tonne this week. The last time the price crossed $10,000 was in March 2022, when it reached a high of $10,845. The price spike came in the wake of the conflict between Russia and Ukraine, which has since seen the metal rebound in the commodity market.
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Commodity Market: Buyer Reaches $15,000 Next?
Market demand for copper increased as leading manufacturing companies around the world now use the metal for renewable energy. Demand for the metal rose while supply remained tight in 2024. For example, supply fell because the government's tightening of mining regulations, geopolitical tensions and labor strikes led to lower supply. Simply put, the mines are not producing enough copper to meet demand in the markets.
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Low supply and high demand are another reason pushing copper prices to reach the $10,000 mark this month. The Globe And The Mail has forecast that copper demand could reach as high as 33 MMT. It added that if the metal remains scarce and demand rises further, copper could reach $15,000 and become the best-performing asset in the commodities market.
Another report from Reuters stressed that copper prices in the commodity market could move higher. However, the report remains doubtful whether it can rise above the $15,000 mark by the end of 2024. Nevertheless, they predicted that investing in copper is promising and could yield better results this year.