US-China trade agreement shifts investors' attention to copper

The trade confrontation between the US and China was one of the main reasons for the recent surge in gold prices to new highs. However, as business journalist Barry Fitzgerald notes, an agreement between the countries to temporarily ease tensions has cooled the precious metals markets.

Now, according to Fitzgerald, investors' attention is shifting to other assets. Among commodities, the copper market is of particular interest.

In early April, when the tariff confrontation was the toughest, copper prices fell. However, since then, the cost of the metal has recovered. On the London Metal Exchange, copper prices rose by 5% to $9590 per ton over the past month.

At the same time, according to the journalist's estimates, the problem of a future shortage of copper supply is still relevant against the background of active development of technology. 

The United Nations recently issued a warning about the projected growth of global demand for copper by 40% by 2040 with supply levels insufficient. The organization estimates that even with the launch of new mining projects, supply will be severely constrained for a long time due to long period of copper deposits development.

In this regard, Fitzgerald assumes a pronounced rise in red metal prices and the corresponding gradual appreciation of mining companies' shares.