Key economic bellwether copper tops $9,000 for first time as new bull market begins

• Copper prices surged past $9,000 per metric ton on Wednesday for the first time since June 2022.
• Greenback weakness and hopes of a rebound in demand from China are helping ignite a new bull market.
• The key metal has climbed 8% so far this year.

Copper prices on Wednesday topped $9,000 per metric ton for the first time since June as the economic bellwether embarks on a new bull market.

Prices on the London Metal Exchange climbed as much as 1.8% to $9,074, marking a fifth consecutive increase. Copper is starting off 2023 with a gain of 8%.

The third most widely used metal in the world slipped into a bear market in June, when it crashed more than 20% from a peak above $10,700 per metric ton in May 2021.

But copper has rallied more than 20% from its low last year amid hopes for a rebound in demand in China and as the US dollar weakens.

China's exit from stringent zero-COVID policies has caused a massive spike in infections, but investors now hope that the latest wave has peaked and demand can begin to tick up once again.

And investors foresee an end to benchmark interest rate hikes by the Federal Reserve this year, making copper and other dollar-priced metals more affordable.

Meanwhile, sentiment on the US and European economies has also grown optimistic, with more analysts seeing a soft-landing possible.

Investors closely watch copper prices as an indicator of the health of the broader economy. A copper bear market has preceded every major recession over the past 30 years, and the metal's use in a broad range of goods from cars to home construction means copper is deeply coiled within the economy.

Copper prices sank in 2022 amid the rising the dollar and fears of a recession. Aggressive rate hikes from the Federal Reserve helped spur US dollar strength and push investors away from metal trades.