Commerzbank, though, believes that the lower prices will attract industrial buyers.
“The price fall was exaggerated so some market players see these lower price as a long-term buying opportunity. Hedging activity has clearly increased in the last few days as these lower prices are attractive,” Commerzbank analyst Daniel Briesemann, said in the article. “Below 7,000 we see a stronger increase in buying interest so copper may still be able to rise quite markedly by the end of the year.”
iPath DJ-UBS Copper TR Sub-Idx ETN
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Max Chen contributed to this article.