Is the Metal Market Rally Just a Mirage? Commerzbank Warns of an Inevitable Downturn Ahead!

Ever found yourself wondering why copper’s price feels a bit like a stubborn cat—almost ready to leap over the $10,000 mark, then suddenly pausing mid-air? That’s precisely the drama unfolding in the base metals market right now. Except for aluminum, most base metal prices have surged lately, buoyed by whispers of potential US interest rate cuts and a wobbling US Dollar. Yet, copper, with its dazzling 3% rise in August, just couldn’t quite break through that psychological barrier it last cleared back in early July. It’s as if the market had baked in all the good news already and now it’s catching its breath. No fresh sparks to propel copper higher in the short term, which means the recent upward sprint might be slowing its roll. You’ve got to ask—will copper find a new catalyst to finally clear that hurdle, or is this as high as it goes for now? LEARN MORE.

With the exception of aluminum, base metal prices have risen in recent days, Commerzbank’s commodity analyst Barbara Lambrecht notes.

Attempt to break above $10,000 has failed on the Copper market

“The price of Copper (3-month forward), which had already risen by 3% in August, headed for the $10,000 per ton mark, which was last exceeded at the beginning of July. The prospect of interest rate cuts in the US and the resulting weakening of the US Dollar (USD) had provided a boost in recent weeks. However, this is likely to have been priced in.”

“As mentioned above, however, there is a lack of further impetus in the short term, so the upward trend is likely to subside. Yesterday, at least, the attempt to break through the $10,000 per ton mark failed on the Copper market.”