Antaike, a Chinese state-backed research house, forecasts a rise in copper and gold prices, driven by robust Chinese demand and ongoing macroeconomic uncertainties. This outlook is supported by solid market fundamentals and strong liquidity, attracting more global financial investors.
Copper prices are expected to continue their ascent, bolstered by a positive demand forecast from China and concerns over raw material shortages. These factors, combined with the shift towards green energy, have pushed copper prices to notable highs. The London Metal Exchange reported its three-month copper contract at a two-year peak of $9,843 per metric ton. Concurrently, the most-traded copper contract on the Shanghai Futures Exchange reached a record 79,840 yuan ($11,025.80) a ton.
Antaike anticipates copper’s upward trend will persist until the U.S. adjusts its interest rates, with significant capital inflows into the market, especially from sectors like electric vehicles, wind power, and IT.
In the gold market, prices have also seen an increase, with spot gold reaching $2,383.79 per ounce, nearing a record high. Antaike predicts gold prices could climb as high as $2,700 per ounce in the mid-to-long term, fueled by increased investor interest and rising production costs.
The report also highlights tin’s promising outlook due to heightened demand from China’s electronics sector, despite production challenges in major producing countries like Myanmar and Indonesia. Prices for tin are projected to fluctuate between 240,000 yuan and 275,000 yuan a ton on the Shanghai market, and between $31,000 and $35,000 a ton on the London Metal Exchange during the second quarter.
While Antaike sees potential for aluminum and silver prices to rise, it remains cautious about lead and zinc, citing a lack of strong demand which may pressure prices in these markets.
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