Make Kitco Your Homepage

Dr. Copper Prescribes Bullish Elixir For Precious Metals

Kitco News

Editor's Note: Kitco readers, have your say! Check out our newest feature - KITCO CHAT! - where you can share your comments and ask questions directly to us.

(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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News