The US dollar weakens combined with hot money inflow, and copper prices hit a record high

Breaking News TechFlow, January 29 — According to Jin10 Data, on Thursday, driven by strong demand expectations and supported by a weakening dollar and geopolitical concerns, speculators continued to expand their buying, pushing copper prices to a historic high of over $14,000 per metric ton. They ignored warnings from some analysts that high prices would suppress physical demand from industrial consumers, and that current supply and demand fundamentals do not support this price level. The benchmark three-month copper contract on the London Metal Exchange surged as much as 7.9% during Asian trading hours, reaching a record high of $14,125 per metric ton. Britannia Global Markets analyst Neil Welsh stated in a report: “Driven by aggressive speculative trading from long positions, copper prices experienced the largest single-day increase in years. Investors are flocking into base metals, expecting U.S. economic growth to strengthen, and global spending on data centers, robotics, and power infrastructure to increase.” The weakening dollar index also supported metal prices. The dollar index approached multi-year lows, making dollar-denominated commodities cheaper for buyers using other currencies.