Commodity Talk: Copper could test $11,000 by year end; less hawkish stance may spark rally, says Saumil Gandhi

The price of copper could potentially retest $10,500 to $11,000 levels by the end of the year due to tight supply conditions and strong demand from China, according to Saumil Gandhi, senior analyst at HDFC Securities. However, in the short term, base metal prices are expected to experience further downside pressure.The long-term outlook for copper is moderately bullish, mainly due to ongoing mining supply issues in Chile and Peru and an increasing demand for copper in India as a result of higher government spending.