Saxo Bank forecasts LME copper to surge towards $10,000 level

After considerably subdued growth in the past year, metals seem to be regaining momentum in 2024 so far. Gold prices globally have been holding steady ahead of the US Fed meeting, while prices in India are up by 6%.

However, silver and nickel grab the limelight, with prices up by 8.5% and 10%, respectively. Copper prices are also hovering at an 11-month high on the LME and all-time highs in China.

The factors contributing to this growth are the rise in China's industrial output, the decline in the dollar index, geopolitical factors, and the expectation of a Fed rate cut.

Speaking to CNBC-TV18, Ole Hansen, Head- Commodity Strategy at Saxo Bank, said, “I primarily focus on copper and with the LME price at the next big level is when we eventually do take out the record highs and I think we will move towards that $10,000 level on LME copper that's the target for now.”