A possible recovery in global demand in 2020 could bode well for copper, which has a strong correlation with the economic cycle.
The metal looks poised for liftoff due to low inventories, high short positions, supply constraints, and better demand, Jefferies analyst Christopher LaFemina wrote in a note to clients, according to Bloomberg.
Goldman Sach’s Jeffrey Currie thinks copper is “set to inflect” in 2020 due to strong growth out of China.
Meanwhile, Morgan Stanley, Bank of America and Citi also have positive expectations for copper and an improving global economy.
Copper (XCU/USD) is currently trading at $2.76 per pound, representing 6 percent gains on a year-to-date basis, has dropped 19.7 percent in 2018.
Copper rally in 2020 could bode well for the Australian dollar, as the metal is one of Australia’s top exports.
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