Development of copper price from July 1959 and predicted development till the end of year 2022

decisive factors influencing the price of this commodity. The demand
for copper has been showing an accelerating trend since the Covid
pandemic broke out. It is thereby imperative to estimate the future
price movement of this material. The article focuses on a daily
prediction of the forthcoming change in prices of copper on the
commodity market. The research data were gathered from day-to-day
closing historical prices of copper from commodity stock COMEX
converted to a time series. The price is expressed in US Dollars per
pound. The data were processed using artificial intelligence,
recurrent neural networks, including the Long Short Term Memory
layer. Neural networks have a great potential to predict this type of
time series. The results show that the volatility in copper price during
the monitored period was low or close to zero. We may thereby argue
that neural networks foresee the first three months more accurately
than the rest of the examined period. Neural structures anticipate
copper prices from 4.5 to 4.6 USD to the end of the period in
question. Low volatility that would last longer than one year would
cut down speculators’ profits to a minimum (lower risk). On the other
hand, this situation would bring about balance which the purchasing
companies avidly seek for. However, the presented article is solely
confined to a limited number of variables to work with, disregarding
other decisive criteria. Although the very high performance of the
experimental prediction model, there is always space for
improvement – e.g. effectively combining traditional methods with
advanced techniques of artificial intelligence.