Copper prices can surge ten times – billionaire investor says

July 06, 2023 03:50 AM PDT | By Invezz

Copper prices can surge ten times – billionaire investor says — Image source: Invezz

Demand concerns continue

Copper price has moved sideways recently as concerns about the global economy continued. Data published this week showed that China’s and European manufacturing PMIs were lower than expected in June. The same trend is happening in the services sector, where the PMIs came short of expectations.

There are also signs that the American economic growth is slowing. Fed minutes published on Wednesday revealed that officials believe that the country’s economy will slowdown because of the tighter liquidity in the banking sector and higher interest rates.

Dr. Copper tends to be highly sensitive to the performance of the global economy because it is widely used in sensitive areas of the economy. Copper is widely used in the electric vehicle manufacturing, utilities, and construction sector.

On the positive side, copper inventories have dropped to the lowest level in 2008, as we wrote here. And in a recent interview, Robert Friedland, a legendary player in the copper industry made the case that prices could keep rising. Friedland is the billionaire founder of Ivanhoe, a leading mining company.

Watch here: https://www.youtube.com/embed/XorCJXL_fPE?feature=oembed

He made three key cases for copper. First, he believes that copper demand will continue rising in the coming years as the recovery keeps rising. This demand will also jump as countries transition to clean energy.

Second, mining copper is becoming more challenging because of the age of top mines. Finally, he noted that other metals like molybdenum have doubled. As such, he believes that copper prices could go up ten times in the long term.

Copper prices forecast

Copper chart by TradingView

Turning to the daily chart, we see that the copper prices have moved sideways in the past few days. The metal has moved slightly below the 25-day and 50-day moving averages. Most importantly, it has formed a symmetrical triangle pattern that I have shown in orange. The MACD has moved to the neutral point.

Therefore, with the triangle pattern nearing its confluence level, there is a likelihood that copper will have a major breakout or breakdown soon. If this happens, the support and resistance levels to watch will be at $3.50 and $4.

The post Copper prices can surge ten times – billionaire investor says appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.