Copper prices in New York posted their biggest gain in six weeks on Monday amid signs the U.S. economy will rebound strongly.
Tuesday's sub-plate, London copper high open high, the gains expanded to 3.5%, a breakthrough of $9000 / ton.
The closure of the border in Chile, a major copper producer, has reignited supply concerns.
Last Friday's better-than-expected U.S. jobs report sparked optimism about the economic recovery, the report said.
Peter Thomas, senior vice president at Zaner Group in New York, said the payoffs report was definitely a positive for copper, adding that the $2.25 trillion infrastructure plan meant "a lot of copper is going to be needed" and that the debate over Biden's infrastructure plan was raging.
The Goldman team argued over the weekend that copper, like oil, is a bottom-fishing game.
Goldman Sachs is adamant that copper's bull market will last for several years, and that the recent month-plus drop is just a seasonal disturbance that has some money exited.
Goldman Sachs said the green economy will also underpin copper demand, which is expected to reach 1.1 million tons this year, 3 million tons in 2025 and 6.2 million tons in 2030.
Goldman Sachs expects copper prices to continue to rise after a brief dip, predicting a global copper shortage of 390,000 tonnes this year and sticking to prices of $9,200, $9,800 and $10,500 over the next three, six and 12 months.
Goldman also points to the vulnerability of copper mines.
The bank believes that even a brief pause or production cut at any of the big mines could trigger a rise in global copper prices.
Similarly, the government of Chile, a major copper producer, recently said it had decided to close its borders to strengthen control of the COVID-19 outbreak.
Chile is one of the main producers of copper, including Codelco, the world's largest copper producer.
That has raised concerns about copper supply.
However, Chile's Ministry of Energy and Mines responded in an email that the closure of the border would not affect the normal operations of mining companies.
Edgar Blanco, Chile's deputy mining minister, said earlier that mining was the engine of Chile's economic recovery, but he said exemptions from the blockade should be granted only to those who perform basic functions and are able to maintain operations.
