A Deutsche Bank report predicts the price of copper futures will gain 17 percent this year since economic circumstances will resume a modicum of normalcy this year and prompt purchases by Europe and China, according to Dow Jones Newswires.
China, the globe's top consumer of the reddish metal and host of the world's most rapidly developing economic system, is expected to increase its demand and Europe is likely to see its economic situation change for the better. Those factors will drive copper futures to $8,600 per metric ton, according to the German bank, which also made reference to the reddish metal's climb in value earlier this year.
"On this basis we expect that the strong performance evinced at the beginning of the year could continue into the second quarter as the physical market effectively catches up with the financial market," the bank said.
In 2011, copper production dwarfed demand by at least 69,000 metric tons, according to Bloomberg, which gleaned its information from the World Bureau of Metal Statistics. A shortage by 175,000 metric tons occurred in 2010, the WBMS stated.
Economic developments typically drive up or down the price of copper given the industrial metal's uses in construction and manufacturing.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.