Copper Hits Record Quarter-End Price Amid Market Peak Signals
Copper has reached its highest-ever quarter-end price, according to Mike McGlone's analysis. The copper market is signaling possible peak conditions as open interest and CME inventories reach notable levels compared to totals on CME, LME in London, and SHFE in China.
McGlone notes that these indicators, along with the S&P 500, suggest that conditions for copper are about as good as they can get. This observation comes from his previous analysis of central bank rate hikes' impact on metal prices, which highlighted potential risks of post-inflation deflation in energy and metals markets.
Declining U.S. natural gas futures may also put downward pressure on diesel and Treasury yields, further supporting McGlone's outlook on copper's recent price action.