‘Copper likely to stay above $9,000‘ – Meyer

‘In fact, due to the current mood music out of China, I expect copper to stay above $9,000 per metric ton in the coming week’. Meyer also speaks to IGTV’s Angeline Ong about his outlook for gold and iron ore.

(AI Video Summary)

Change in copper demands

In this interview, John Meyer, a mining analyst and partner at SP Angel, talks with IGTV's Angeline Ong about what's happening in the commodities market, especially with metals like copper. He explains that there is a change in the demand for copper because developing countries like Brazil, Indonesia, and China are growing economically. Chinese smelters are struggling to get enough copper from Peru, Panama, and Chile, which has caused the price of copper to drop. But recently, a company called BYD, which makes electric vehicles, has shown that demand for copper is increasing again.

Meyer also mentions that China is selling a lot of what they produce all over the world, even to unexpected countries. This increase in demand is not only affecting copper prices but also nickel, lithium carbonate, and rare earth prices. These prices have been low for a while but could go up soon.

Copper prices need to stay above certain levels

From a technical point of view, Meyer believes that copper prices need to stay above certain levels to keep going up. If they drop too low, it could be a problem.

When asked about what could trigger a real increase in demand for copper, Meyer explains that the market is waiting for the Federal Reserve (the central bank of the United States) to lower interest rates. If they do, the value of the US dollar might go down, and that usually means commodity prices go up. This would be good for copper prices.

Discussing iron ore and gold

He also talks about iron ore, which is puzzling because the demand is weak, but the price is still high in China. He explains that China is finishing building apartment buildings, and they need a lot of iron ore for that.

Meyer thinks that global growth might happen later this year because interest rates are expected to go down and the European economy might improve. This hasn't happened since 2004-2005. He is optimistic about the future and believes that things are getting better and the risks are on the upside.

Lastly, Meyer talks about gold. He says that gold prices are going up because people are uncertain about where to invest their money. If interest rates go down, the value of currencies becomes uncertain, so people are buying gold as a safe investment. Central banks are also buying gold because they don't know which currency will be best in the future. Meyer thinks that gold could easily reach $2,200 per ounce, if not higher.

Overall, the interview is about the recent trends in the commodities market, particularly with copper, and how it is influenced by factors such as demand from developing countries, interest rate cuts, and uncertainties in the global economy. Meyer is optimistic about the future and believes that gold prices will continue to rise.