Copper Stays Slippery Despite Upbeat Global Economic Outlook

Published on Mar 10, 2021 12:11

COMEX Copper tanked, not holding on despite a rise in the US equities. The metal fell around 2% to approach $4 per pound mark in last session as traders continued in a profit booking mode after prices pulled back from a decade high. However, overall prospects look supportive for the metal as global economy continues to expand. A US recovery turbocharged by President Joe Biden`s stimulus package will help power a faster than expected global economic upswing that risks leaving Europe behind, according to OECD. The Paris-based organisation said it now expects global output to rise above pre-pandemic levels by mid-2021 after major economies showed greater resilience at the end of 2020, and as evidence of vaccine efficacy grows and governments add extra demand stimulus. OECD raised its world growth forecast for 2021 to 5.6% from 4.2% and more than doubled its prediction for the US to 6.5%. This augurs well for the red metal.