Copper prices, seen as economic barometer for centuries, give recession warning

Economists look at the price of copper as an indicator that the economy is at risk of recession, and it is flashing red.

While not as commonly talked about as other economic metrics, such as the unemployment rate or yield curves, copper has proven over centuries to be a procyclical commodity, which means that when its price goes up, so typically goes the economy. But when its price starts to fall, it could mean the economy is heading in the same direction.

Copper is now trading at about $3.57 per pound. That is a steep and aggressive decline from its peak of $4.94 in March — a nearly 28% decline in just a matter of months.