Copper rally could cool after surge to record high

Copper smashed through its all-time high on Wednesday, spurred by fresh concerns over mine supply and hopes of a US-China trade deal, but analysts questioned how much further the rally could run without a sustained pickup in demand, reports Reuters.

Prices of copper, considered a bellwether for the global economy, have risen more than 27 per cent so far this year, also helped by a weak dollar - which makes metals more affordable for holders of other currencies - and falling interest rates.

"The prospect of a trade deal between the US and China has provided a fresh catalyst to copper's rally," said ING analyst Ewa Manthey, adding that the bank forecast a tighter copper market balance this year and in 2026, when - like many banks and brokers - ING envisages a deficit.