Copper bounce may be sign of medium-term lows

Copper sentiment has bounced off the lowest levels since April, rising for the first time in four weeks, with the Marex Spectron Global Copper Sentiment Index standing at minus 46.2, an increase of 3.8 points on the week. "Whether the improvement in sentiment is a genuine indicator of a market low or merely reflects a squaring off of positions prior to year-end remains to be seen," said Guy Wolf, head of market analytics at commodities broker Marex Spectron. "If we do not see traders re-establish short positions in early January, it is possible we have seen the medium-term lows for copper but it is too early to make that call definitively yet," he said. Market lows for copper in recent years have followed far more depressed levels of sentiment.