Gold prices are skyrocketing in 2024 delivering tenfold returns to investors in just four months this year. The XAU/USD index is now looking to climb above $2,500 and reach a new all-time high. The spike in price comes after retail investors, institutional funds, and governments across the world are accumulating gold in their Central Bank reserves. The fear of a market crash amid the Iran and Israel tension is what’s driving gold prices up. Now that gold is considered a safe haven, institutional investors are also flocking towards copper this year.
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After gold, copper is now the most sought-after asset in the commodity market. Copper spiked by more than 65 points on Monday’s opening bell surging 0.61% when the markets opened. The commodity is now trading at the 9,861 price range and is looking to climb above the $10,000 mark. Both gold and copper are delivering stellar returns to investors this month in the commodity markets.
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Why Is Copper Rising Along With Gold?
Along with gold, copper constitutes to become a safe haven as multinational corporations need the commodity to build their products. The green energy initiatives and the boom in AI are pushing copper prices to reach new highs this month in the charts. Copper is getting its main use-cases in manufacturing electric vehicles (EVs) as car markers are launching new electric automobiles.
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The shift towards sustainable energy is helping copper stay relevant and sure in price along with gold. The US government has also established the Minerals Security Partnership (MSP) in 2022. It comprises 14 countries including the US, Canada, Australia, Estonia, Japan, South Korea, Sweden, and the EU. The partnership focuses on advancing critical minerals projects that adhere to ESG standards.
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In conclusion, all these developments are making copper to be a safe investment apart from gold in the commodity market. Copper could rally further in the charts along with gold and the US dollar this year in 2024.