Copper Futures have risen to a 26 month peak on the second straight day on Wednesday. Copper for December delivery HGZ0 ended up 2.65 cents at $3.7530 per lb on the COMEX metals division of the New York Mercantile Exchange.
Copper futures of December delivery rose by 1.7% yesterday on the New York Comex. This is the highest price commanded by copper since July 30, 2008 as per Bloomberg reports. The current demand for commodities as an alternative asset class is being driven by the weakening dollar.
As per Matt Zeman a metals trader at LaSalle Futures Group located in Chicago the dollar is rolling again and commodities are higher across the board. He said that as long as money printing continues people are going to want to have physical assets in their hands.
Perhaps that is why hard assets like commodities are being favoured by investors over the volatile currency markets at present.