Copper Prices Smash Gold's Gain as 'Dr. Copper' Signals Healthy Economy
Copper prices have been on the rise, hitting new highs and outperforming gold. This trend is often referred to as 'Dr. Copper,' a term that suggests the metal's price can be a good gauge of the economy's health.
Despite recent concerns about inflation, rising gas prices, and tariffs adding nearly 7% to the cost of goods imported from outside the country, copper's strength is driven by supply disruptions at major mines. Natural disasters have struck some of the largest copper mines on the planet, including Indonesia's Grasberg mine, Congo's Kamoa-Kakula mine, and Chile's El Teniente mine.
The price of copper has jumped to nearly $6.85 a pound on the Comex exchange in New York and to $14,617 per metric ton on the London Metal Exchange. The metal is climbing this year, up about 12% since January, while gold is down slightly for the year.