Dr. Copper Prescribes Bullish Elixir For Precious Metals
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(Kitco News) - The copper market has long been known by veteran traders as a harbinger for developments in other markets, including equities and other raw commodity markets. Thus, it's nickname, "Dr. Copper." The red industrial metal is a leading component in new construction of buildings and infrastructure worldwide. When demand for copper is on the rise, it suggests world economies are also on the upswing. It can also then be extrapolated that there will also be rising demand for other raw commodities, including the precious metals.
See on the monthly continuation chart for nearby Comex copper futures that prices are in a fledgling uptrend and have just hit a nearly three-year high. Prices have also just moved above what was major psychological resistance at the $3.00 level. Importantly, see on the monthly chart that prices are nowhere near historical highs that reached well above $4.00 a pound a few years ago. These technical elements suggest there is more room on the upside for the copper market in the coming months, or longer.
Such also bodes bullish for the precious metals, gold, silver, platinum and palladium in the coming months.