Copper prices went south amid the U.S. stock market crash, falling below the $9,000 mark. The fears of a recession in the U.S. sent the stock and commodity markets into a tailspin, wiping nearly $2 trillion worth of wealth.
The markets breathed a sigh of relief on Tuesday as the Dow Jones closed nearly 300 points up and snapped a three-day losing streak. However, the relief has not brought optimism, as investors fear another slump could be on the cards.
Also Read: US Stock Market Plunge: 3 Hidden Gems to Snatch Up
Market Risks & Copper Price Trends
The commodity markets also remain at risk as tensions in the Middle East are escalating between Israel, Palestine, and Iran.
Oil prices were the first to take a hit, and West Texas Intermediate (WTI) and Brent Crude fell by more than 2% early this week. Copper was also affected, as prices fell to a low of $8,700.
Copper prices hovered around the $8,766 mark on Wednesday and remained on the greener side of the spectrum. They were up nearly 0.59% in the day’s trade and surged by 47 points.
Copper Prices Fall: Should You Buy Now?
Now that copper prices are low, will this be the best time to accumulate? In this article, we will highlight whether you should buy the metal during the dip or avoid it.
Also Read: BRICS: US Markets Could Face Substantial Losses, Analyst Declares
While copper remained in high demand for industrial purposes last year, in 2024, that’s not the case. The demand for copper dipped this year, and countries that produce and export the metal have stopped adding additional rigs. Countries are also facing backlash from environmental activists from adding additional rigs to protect the ecosystem.
Also Read: VeChain & Cardano Price Prediction For August 2024
Future Outlook for Copper Prices
Even copper stocks fell the hardest this week when the market crashed. Therefore, the downturn for copper prices might not be over, and they might dip below the $8,000 mark next.
It is advised to wait for many more downturns and then take an entry position when they bottom out.