Copper prices have now hit $3.90, which is a five-week high, and is on track for its third consecutive weekly gain.
One big reason for this recent jump is that the strength of the dollar has been getting weaker for around the past month. And as we know, when the USD Index goes down commodities like copper that are backed by the dollar go up.
This is because When the U.S. dollar weakens, the price of copper in other currencies becomes relatively cheaper, increasing its demand and driving up copper prices.
China is also experiencing some issues with low consumption and low supply which could also be helping copper prices right now.
However, market participants expect to see an increase in supply with the arrivals of shipments from Congo as soon as the end of the month, so this is a factor we should keep in mind.