Investing.com — Copper’s future is uncertain due to the anticipated strengthening of the dollar, looming tariffs and a possible slowdown in the energy transition under the incoming administration of President-elect Donald Trump, according to BMI analysts , cited by the Wall Street Journal.
They emphasize that while copper is likely to prosper due to environmentally driven sentiment, the risks associated with their relatively optimistic outlook lean toward the negative side.
In a note, BMI analysts said: “While we still expect copper to continue to thrive on climate-related sentiment, we note that the balance of risks versus our relatively optimistic outlook is downward trend.” They do not anticipate a substantial increase in demand for metals from China’s construction industry.
Still, they suggest that increased industrial activity and growth, spurred by government measures, could be enough to push prices higher. Currently, London Metal Exchange (LME) three-month copper is trading up 0.6% at $9,153 per metric ton.
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