MarketWatch: Copper Hits Lowest Price Since 2015, Thanks to Trade War
Everyone knows I am an advocate of precious metals and commodities. Copper has long been known as the leading indicator of economic activity and its decline would signal the slow of economic growth.
This month, copper prices reached lows unseen since 2015 and it has investors worried.
Futures prices for copper HGZ8, -0.34% traded roughly 17% lower year to date after a nearly 32% jump last year. They saw a settlement peak this year at $3.30 a pound in early June, but fell to a low of $2.56 by Aug. 15.
Like I told Myra Saefong from MarketWatch, the price of copper was up the first six months of 2018, then it fell more than 20% in just two months. That’s huge!
Copper’s decline came as the U.S. imposed tariffs on China and trade wars with other nations began to threaten global economic growth.
Trade disputes have contributed to the recent losses in global stock markets, but the impact was more heavily and quickly seen in the industrial metal prices.
If you followed my Magic Metals promotion a while back, in my words, metal has lost its magic for now.
Another factor is slowing economic growth in China. Slow growth in China is not good for commodities, naturally.
The short-term outlook for copper is bearish.
For the full story, check out Copper Weakness Hints at Economic Woes Ahead.