COPJ ETF

Geopolitical and economical forces will weigh heavily on prices for all commodities. In the case of copper, China's consumption will play a pivotal role in which direction prices may take.

Look at ETFs to capitalize on the red metal's bullish trend, driven by renewed investor demand and the Fed's interest rate cut.

Bank of America is forecasting bullish prices for copper. Analysts are forecasting that the price of copper will be above $10,000 per tonne in 2025 thanks to global decarbonization efforts.

Copper prices have surged Tuesday, reaching their highest levels in nearly six weeks, according to CNBC. In New York, copper for September delivery briefly touched $4.3065 per pound on Tuesday, the highest since mid-July, before settling at $4.2365, up 0.4% for the day.

While demand has yet to catch up with supply in the current market environment, automotive manufacturers are already anticipating that electric vehicle (EV) demand will rise in the future, which could drive copper prices even higher. Automotive manufacturers are already in a pinch when it comes to selling EVs.

Wall Street was upbeat last week on renewed Fed rate cut bets.

Copper's momentum is increasing and it may not be short-lived due to its historical performance during rate cuts. This could offer additional support for investors looking to capitalize on the metal's potential.

One unexpected theme this year has been the strong performance of copper and copper-related ETFs, with returns exceeding 16% to over 20% year-to-date.

The current supply-demand backdrop should set the stage for higher copper prices. In turn, this should feed into more bullish vibes.