Copper Outlook Bullish as Trade Risks Abate, Boosts Commodities

COMEX Copper Future (HG) weekly chart copper chart created with TradingView in addition to the technical factors, the fundamental outlook is also favorable for growth sensitive commodities like copper. Our overall positive outlook reflects our industry-specific views that vary from a sub for precious metals in our constructive view of natural gas. Our cautious price outlook does not mean oil is unattractive to investors given the downward slope of the forward curve.

Gold is always a boost from the inverse yield curve. It trades at its highest since 2013 with the price of gold bullion climbing to a fresh annual high ($ 1,557) in September. Gold in COMEX is in a positive trend and robust despite DXY. It’s over $ 1,251 and trade comfortably over 200DMA. In the past two months when trading sideways, a total of ETF stocks jumped to reach 167 tons 2,545 tons, less than 30 tons below the December 2012 record. In the last two months when trading sideways, total ETF stocks jumped by 167 Reaching 2,545 tons, less than 30 tons below the December 2012 record. Assuming the relationship between supply and demand for gold and real returns observed in recent years has largely held, we view gold as rich in terms of real returns ,

In 2019, there is a strong possibility that the customs war will escalate into a major conflict, with China selling down its US Treasury dollar and debt exposure. COMEX Copper Future (HG) Daily Chart Copper Chart Draws TradingView Looking at a weekly chart shows that the metal has also broken the June descending resistance channel after a failed attempt in April that was followed by a more than ten percent decline. New hopes about cooling tensions between Beijing and Washington combined with the completion of the 1 deal phase renewed risk appetite. The worries about the global economy and the demand outlook for oil are bigger and bigger negative for the market that follows.

Grain markets were mixed with Chinese buying and tightening supply prospects soybean futures hit a three-month high. The market is currently pricing one-year oil futures with a 6% discount on spot, indicating a potential profit of 6% versus being long-oiled even if oil prices remain unchanged. The stock market and oil market correlation is back.

Gold prices edged higher on Monday and the dollar plunged against rivals as investors sought more clarity about the phase of a trade agreement between the United States and China. Grain prices are close to a 10-year low, burdened by abundant stocks of corn, soybeans and wheat. Finally, when oil prices move higher, alternative energy sources become even more profitable, denting demand. You have touched $ 70 a barrel strong in the past 12 months (bbl) in early 2018.