During downturns, gold usually climbs because it is safe and copper declines in line with activity. Why is this crisis different?
a neat choreography to copper and gold prices. When one rises, the other tends to fall. In an economic downturn, for instance, gold climbs as investors seek a haven. Copper prices dip as manufacturing and construction slow. But these are unusual times, and gold and copper are moving in unusual ways. Rather than continue their customary do-si-do, they are leaping upwards together.
Gold started its recent climb from an already lofty perch. The ascent began at the end of 2018, as a trade war between America and China clouded the prospects for economic growth. Sinking interest rates in America lowered the yield on ten-yearinflation-indexed Treasury bonds, making gold shine brighter. From November 2018 to late 2019 the price of the yellow metal jumped by about 25%, to $1,515.
Copper’s rise this year may be even more striking. Its price sank by more than a quarter from January to mid-March when covid-19 spread across China, which accounts for about half of the red metal’s consumption. Now, however, efforts to stimulate China’s economy are spurring investment. In June a tracker of sector-level demand for copper in China used by Citigroup, a bank, rose by 5.5% on the year, its biggest jump in over two years.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Oil slips as rising coronavirus cases, U.S.-China tensions weigh on marketsOil prices edged down on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets.
Read more »
Oil slips as rising virus cases, U.S.-China tensions weigh on marketsOil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets.
Read more »
Airlines Had a Terrible Quarter. Here’s What Could Be Next for Their Stocks.A recovery for carriers stalled in July as coronavirus cases rose and states imposed quarantine measures.
Read more »
The geometry of the pandemic in AmericaIn two-thirds of American states, infections were rising when governors started to ease lockdowns
Read more »
Airline Stocks Had a Terrible Quarter. Analysts Look at What’s Next for the Stocks.A recovery for carriers stalled in July as coronavirus cases rose and states imposed quarantine measures.
Read more »