Growing demand for copper futures contracts and increasing volumes of institutional funds into this asset contributed to the fact that since the beginning of the year, the price of copper has increased by 10% and the price of the CUC/USD contract reached a 14-month high.

FreshForex analysts have revealed the key factors that will influence the further growth of copper prices:

Increased demand for the metal due to the transition to green energy. Most of the equipment of solar or wind power plants, as well as electric cars, uses copper, so its use will only grow.

Supply risk. On April 3, Canadian mining company Ivanhoe Mines reported a 6.5% quarterly decline in production at its Kamoa-Kakula mining complex in the Democratic Republic of the Congo. In addition, a drought in Zambia is threatening the planned expansion of the country's mining industry. The latest forecast from Goldman Sachs indicates a copper deficit of more than 500,000 tons in 2024.

Expected rate cut by the US Federal Reserve (Fed). CUC/USD rallied after Fed Chairman Jerome Powell's comments about a rate cut this year.

Analysts at CNBC believe that copper prices could rise by more than 75% by 2025. The experts at FreshForex also expect the CUC/USD to continue its upward trend, but with more restraint, as the global economic situation may change dramatically.