Copper crosses 8000 levels: Mecklai

The below graph hereby depicts the price movement of Copper. When the year started copper prices were trading around 7500 levels after which there was a spike in copper prices which touched a high of 8730. This boost in copper prices was because of two reasons firstly demand from industries and secondly low inventory figures.

A fall has been witnessed in copper since May 2012 indicating a slowdown in the global economy. Whereby industrial production figures in various economies, be it developed or developing having been showing a sluggish attitude. With steps of infusing liquidity by the major economies it is likely that industrial production figures to pick up which has been evident with since last two to three trading session post the ECB meet. The key point to watch is the outcome of FOMC meet scheduled for the day on the Copper prices. Therefore if QE3 is introduced a surge in metal prices could be witnessed.

The below graph display the movement in copper prices on LME

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