Recent stock markets suggests an end to the mining bear market with the increase of gold and copper prices.
“I think it is possible that the worst is over,” Scotiabank commodities analyst Patricia Mohr said. “It doesn’t mean that prices generally are going to move up in a straight line.”
Mid-January appears to have been the bottom for mining stocks and key commodities like gold and copper. There was a run-up in metals the first week of March.
Mickey Fulp, who writes the Mercenary Geologist newsletter, said it was likely the result of New York-based hedge funds wagering on the market hitting bottom and moving back into commodities.
Gold prices are up 17% since mid-December, and copper, which hit a low of US$1.96 per pound on January 20, has since inched up to US$2.25 – a 15% increase.
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