Copper futures (HG=F) has risen over 15% year to date thanks to AI demand and increased interest in renewable energy technologies.
LPL Financial chief technical strategist Adam Turnquist joins Catalysts to explain what copper prices indicate about the overall macroeconomic picture and the commodity's potential future moves.
Turnquist reflects on copper's trajectory: "Potentially we could see a drawdown maybe to the 2023 highs right around 425, 430. I think that would be a pretty good entry point if you're looking to get long copper, especially to play this energy transition — you think about demand outpacing supply longer term. It takes a long time to get copper out of the ground ... Whether it's EVs or just the net zero emissions, there's not enough copper to meet the demand in the current state. So I think longer term copper moves higher."
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This post was written by Nicholas Jacobino