Base metals now seem to be the focus for traders
A year after many said would be the year for industrial metals, the trade now looks to be back. IGTV’s Jeremy Naylor looks at the trigger today for long copper and also the gains made in zinc and aluminium.
(AI Video Summary)
Copper prices on the rise
Mining stocks in the London market have been doing really well lately. In fact, experts are predicting that the London stock market will have its best month of the year. London is known for being a hub for mining and oil companies, and that's actually been a good thing for the market. People are investing more money into the mining sector and as a result, some mining stocks have been making big gains.
One of the reasons for this is the performance of base metals, like copper. Copper prices have been going up and even though there was a little drop recently, experts see it as just a temporary blip. They think copper could even reach new all-time highs in the future, maybe even as high as 9406. That's a big deal because the last time it reached that level was way back in January 2023. It might not happen right away, maybe not even by the end of 2023, but it's definitely something to keep an eye on in 2024.
Aluminium and zinc are also on the rise
But it's not just copper that's doing well. Other base metals like aluminium and zinc are also on the rise. Aluminium prices have reached levels not seen since 24 April, which is a sign that more people are investing in the metal. Zinc prices have closed at levels not seen since 29 September, and if it breaks its resistance level at 2673, experts say the next high to watch out for is on 13 April at 2909.
Overall, there's a lot of money flowing into base metals right now, which is making mining stocks in London go up. This is a good sign for the mining sector as a whole, and it shows that there's potential for even more growth in the future. So, if you're thinking about investing in mining stocks, it might be a good time to consider it.
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