copper prices inched higher to a one-week high amid growing impatience with more stimulus measures in China. Adding to this, the greenback retreated from two-month highs also weighted in recent gain, although fears of higher U.S. interest rates still kept the outlook for metal markets muted.
Copper futures rose 1.41% to 3.7705a pound. MCX Copper futures rose 0.63% to 733.30.
The People’s Bank of China largely disappointed markets with its interest rate cut this week, drawing calls from investors for more targeted, fiscal measures to support a slowing economic recovery.
China is the largest copper importer in the world, and this year’s economic slowdown there has had a significant impact on copper pricing and demand.
The Friday speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium is the main topic of discussion this week. The Fed Chair is expected to provide more cues on the path of monetary policy, with sticky inflation and a tight labour market potentially inviting a hawkish outlook from the central bank.
Technical Outlook
Copper prices stalled their recent bearish momentum. Since 17 August 2023, prices rebounded from the low of 718.25 and tested a recent high of 734.15. Today, prices traded at 732.75, up 0.56%.
As per the report released on 17 August, copper prices hit the first predicted level of 728.00, and moved towards the second 735.50.
It’s expected that trend may remain positive in the near future. A break above 735.80 will open the door for the next resistance 742.50-745.00. Else, every dip towards 729.50-727.50 could attract buying activities.
On the downside, crucial support is seen at 723.50 and below it, only prices may retreat towards 718.50-712.00