The US dollar weakens combined with hot money inflow, and copper prices hit a record high

BlockBeats News, January 29, Thursday, due to speculators being encouraged by strong demand expectations and supported by a weakening US dollar and geopolitical concerns, continued to expand their buying, pushing copper prices to a historic high of over $14,000 per metric ton. They ignored warnings from some analysts that high prices would suppress physical demand from industrial consumers, and that current supply and demand fundamentals do not support this price level.

The London Metal Exchange benchmark three-month copper rose as much as 7.9% during Asian trading hours, reaching a historic high of $14,125 per metric ton. Britannia Global Markets analyst Neil Welsh stated in a report: “Driven by aggressive speculative trading from long positions, copper prices experienced the largest single-day increase in years. Investors are rushing into base metals, expecting US economic growth to strengthen, and global spending on data centers, robotics, and power infrastructure to increase.”

The weakening of the US dollar index also supported metal prices. The dollar index is approaching multi-year lows, making dollar-denominated commodities cheaper for buyers using other currencies. (Jin10)