“The reason why copper is not participating to the upside right now is there are too many unanswered questions,” said Adam Sarhan, chief executive of Sarhan Capital.
He cited the rise in crude oil prices and geopolitical tensions in the Middle East, monetary tightening measures in top-consumer China, and the uncertain outcome from Japan’s nuclear crisis as being the most troublesome issues facing the global recovery.
“Investors simply do not know if these events are going to derail the global economic recovery,” Sarhan said.