Copper price rally reaches new high

Copper prices surged on Wednesday as rising inflation expectations caused by US stimulus, a falling dollar, decreasing rates of coronavirus infections and historically low stocks spurred fresh buying.

On the Comex market, copper for delivery in March advanced 2% to $3.7955 a pound ($8,350 a tonne). If it closes at these levels it would be the highest since March 2012.

“The idea that US stimulus is going to lead to higher inflation has taken hold this week, which is a positive for copper and other commodities used as a hedge against inflation,” Tom Mulqueen, an analyst at Amalgamated Metal Trading told Reuters.