"Dr. Copper" Prescribes Gold

The idea behind "Dr. Copper" is that copper is a reliable barometer of economic growth, as the demand for copper tends to rise when the global economy is expanding and fall when it's contracting.

Last December, I shared my bearish outlook for copper futures titled “Fed Fears Inflation, Copper Fears Hawkish Fed”. It was based on the long term map of downward move with a current pullback playing as a junction between large 2 legs down.

The majority of readers expressed a mildly bullish stance, with the belief that the price of $3 for copper futures should hold.

The second largest group had an ultra-bearish outlook, targeting a price of $1.25 during a potential Great Recession.

Let us see in the weekly chart below the updated map.

Copper Futures Weekly

Source: TradingView

The copper futures price stalled at the same level after an earlier attempt to push below the red trendline support failed. Continue reading ""Dr. Copper" Prescribes Gold"