Copper posts record close as debasement trade lifts gold, silver and Bitcoin

Copper futures settled at $6.71 per pound on Comex on Tuesday, their highest closing price in history. September copper futures gained roughly 1.6%, according to Trading Economics. London Metal Exchange stockpiles reportedly fell 14% since late July to 214,550 tonnes. Chile reduced its output forecast for a second straight quarter. An outage at Indonesia's Gresik smelter tightened the market further. The debasement trade describes investor purchases of scarce assets on bets that U.S. debt management will weaken the dollar. The U.S. Treasury doubled its maximum bond buyback size last week to at least $4 billion from $2 billion. Critics viewed the expanded program as stealth easing that shifts pressure onto the currency. The dollar index traded near three-month lows after its third losing week in four. Gold traded around $4,666 per ounce. Gold was tracking its best month since 1999. Gold had risen for five straight weeks. Gold gained more than 5% last week. Silver traded near $69. Deutsche Bank analyst Michael Hsueh said gold could reach $4,800. Bridgewater Associates founder Ray Dalio said the government's financial condition was at an inflection point. Bitcoin traded near $78,900, up about 0.23% in 24 hours, according to BeInCrypto Markets data. Bitcoin briefly topped $81,000 on Tuesday, its highest level since May. Bitcoin rose 22% last week in its sharpest three-day rally in years. CoinGlass data showed more than $4 billion in short positions were liquidated during the breakout. Stephen Coltman of 21Shares said the Treasury buyback mattered more for its message than its size. Traders will watch upcoming Treasury buyback operations for signs that pressure on the dollar is deepening or fading.