Copper prices climbed to their highest since 2011, retracing to their high of $9,710.29/t. Given the current outlook, prices could extend gains up to $9,750/t.
The key trigger driving upside in copper now is the situation in Chile, where workers went on strike. Chile and its deposits account for about one quarter of the world's copper supply, and if there are is a shortage in that country, global exports will immediately experience a supply crunch. The market is currently factoring this scenario into prices.
In addition, the greenback has depreciated against the euro to a seven-week low on global FX trading floors, so a weak dollar plays into the copper rally as commodities become more attractive to purchase in other currencies.