Debasement Trade Drives Copper to Record High

Copper prices hit a new record high on Tuesday, closing at $6.71 per pound on Comex, marking the highest price in its history.

The surge is attributed to the debasement trade, where investors are rotating into scarce assets due to concerns that US debt management will erode the dollar's value.

This trend is not limited to copper; gold and silver prices have also increased, with gold trading around $4,666 an ounce and silver near $69. Bitcoin has followed suit, rising 0.23% in 24 hours and briefly topping $81,000 earlier on Tuesday.

The Treasury's decision to double its maximum bond buyback size from $2 billion to at least $4 billion has been seen as a stealth easing measure that will put pressure on the currency.