After reaching 11-week highs, copper futures retreated on the outlook of waning economic growth in both China & the US – the world’s biggest consumers of the metal. For the year, copper futures is down 6.4% amid the reality of slowing economies.
Our government figures showed today US GDP falling at an annualized rate of 1% in the first quarter – more than some economists estimated. In the next week, a purchasing managers index is expected to slower growth than previously estimated in China.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, had this to say regarding the current copper futures situation, “China has been a real driver in commodity prices and even the hint of a slowdown in manufacturing, like we saw in April’s PMI, could put some pressure on copper (futures) going forward.” Brady added, “Tepid growth in the US would do little to offset any real demand destruction from China.”
Copper futures trend is clearly “up” and pulling-back in what looks like a normal correction. I am looking for a lower-risk way into the copper futures market on this current dip.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.