Gold and Copper May Have More Room to Run in 2018, Bank of China Says

  • Analysts see gold at $1,400 and copper hitting $8,000

  • Weak dollar, stretched stocks, falling bonds spell gains

The stage may be set for commodities to extend their stellar gains, according to Bank of China International analysts.

By the fourth quarter copper will average $7,500 a ton and gold $1,400 per ounce, they wrote in a note this week, as financial drivers potentially outweigh fundamentals in 2018. In other words, the stars may continue to align for raw materials.

“In a world of upbeat economic growth, USD weakness, falling bond prices and elevated equity valuations, the commodities revival should come into full bloom,” said analysts led by London-based Xiao Fu, the commercial bank’s head of commodity market strategy.

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