Copper prices zoomed 1.7 percent higher on Monday to reach levels not seen in nearly three years as investors bet on further global economic growth.
Futures for September delivery reached a high of $3.0015 per pound, their highest since November 2014. The metal has also seen its value surge 3.5 percent this month, putting it on track to post its longest monthly winning streak since last year.
Copper since November 2014
Traders see copper as a bellwether for global economic growth because of its use in manufacturing as well as housing and other development.
Economic performance around the world has been stellar this year. The Eurozone economy grew 2.5 percent for the second quarter on an annualized basis, much more than the European Commission’s estimated potential growth of 1.7 percent for 2017.
In Japan, second-quarter gross domestic product rose 4 percent on an annualized basis, easily topping expectations.
Copper has also gotten a boost lately from a weaker U.S. dollar, strong demand out of China, and chatter that China is considering banning imports of scrap metal, Jefferies strategist Sean Darby wrote in a note Monday.
The greenback has fallen more than 8 percent this year on waning expectations of tighter U.S. monetary policy, tax reform and fiscal stimulus by the Trump administration.