Like they have for much of this year, copper exchange traded funds (ETFs) are surging on the heels of prices that have hit 31-year highs. And according to some, the top isn’t in sight.
The primary impetus for today’s move was China’s decision to keep interest rates put. According to The San Francisco Chronicle, the country said imports of copper gained for the first time in three months. Copper is on a major wave of momentum, having gained 43% since July 1. [Have Commodity ETFs Topped Out?]
Stable rates in China could continue to boost buying, which has given analysts a reason to be bullish on the industrial metal into 2011.
Goldman Sachs, in particular, has some bold forecasts for copper and other metals in the new year. A report suggested that metals will diverge and move on their own individual fundamentals, thanks to emerging market growth and demand from developed economies, says Reuters.
Tisha Guerrero contributed tot his article.