The Rio Tinto share price has surged by more than 3% as mining stocks soar in London and Australia. The shares are trading at 6,730, which is its all-time high. It has surged by more than 80% in the past 12 months and by 18% this year alone. Other mining companies like BHP, Glencore, and Antofagasta have also surged.
What happened: Rio Tinto is a global mining giant with operations in tens of countries like Australia, Peru, Chile, and South Africa. The company deals with metals like iron ore, aluminium, copper, diamonds, and salt, among others. Iron ore is its biggest business followed by copper. Therefore, the company does well when the commodity sector is vibrant.
And, we are currently seeing the best periods in the commodity sector in more than a decade. For one, the Bloomberg Commodity Index (BCOM) has risen by more than 0.40% today. Further, iron ore prices have jumped to $230 per ton, a week after it rose to $200 for the first time ever. Similarly, copper and other metals are hovering at multi-year highs.
Therefore, the Rio Tinto share price is rising as investors bet on more dividends and buybacks. Furthermore, the company has already boosted its dividend by 26% this year.
Rio Tinto share price outlook
A look at the daily chart shows that the Rio Tinto stock jumped to its all-time high. The shares managed to gap-up and move above the important resistance at 6,555p, which was the previous highest point. The shares have moved above the ascending trendline and the short and longer moving averages. It is also above the VWAP indicator. Further, its volume has also risen.
Therefore, the shares will likely continue rising as bulls target the next key resistance at 7,000p. However, a drop below the support at 6,555p will invalidate this trend.