Economics
Dr. Copper's PhD in Question as Rally Starts Looking Stretched
- Role as market barometer in doubt as trader positions grow
- A shift in speculation could trigger volatility: AXA’s Tinker
Barclays Analyst Says He Is Still Cautious on Copper
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Dr. Copper’s role as a bellwether for the global economy is increasingly under scrutiny.
The orange metal has climbed about 26 percent since early May amid robust Chinese demand and as some of the biggest mines suffered production interruptions. The question facing investors is whether gains are still being driven by demand -- which would indicate growth is gaining momentum -- or by speculators riding the trend, which would suggest the rally is no longer reflective of economic fundamentals.