Copper's resilience in the face of 'higher for longer' — thoughts?
Been watching copper with a bit of a raised eyebrow lately. You'd think with the Fedsounding like a broken record about 'higher for longer' and the general slowdown chatter, industrial metals would be taking more of a hit. Yet, $HG_F has been pretty robust, certainly not collapsing.
Is this simply a testament to the long-term green energy transition narrative finally overriding some of the cyclical fears? Or are we seeing the ghost of China's stimulus past still providing a floor? I've been eyeing some of the copper miners, especially the diversified ones that aren't purely reliant on this one metal, but the current macro feels… conflicting. My watchlist is full of these sorts of contradictions lately. It's like the market is trying to decide if it's going to rain or shine, and I'm just here with an umbrella and sunglasses.
It's an interesting point. While the green energy narrative certainly provides a structural floor, I wonder how much of the current resilience is also tied to speculative positioning or even a lagging response to supply-side issues that haven't fully played out yet.