Copper prices plunged towards lowest levels in over four months as concerns of high interest rates from the Federal Reserve hampered the demand outlook for metal prices as per the latest copper market news.
Copper prices plunged to their lowest levels in four month. Prices took a steep fall on concerns about global growth after bond yields surged on views that interest rates need to stay high to dampen inflation.
U.S. Comex copper futures (HGcv1) dropped 0.75% to $3.56 a lb. MCX Copper futures dropped 0.41%at 696.65.
Cheerful PMI data from the US and indication that the labor market remains tight by historical standards, send dollar index at 11 months low and bond 10-year Treasury yields close to 16-year highs, which hampers the outlook on industrial activity across major economies.
LME inventories rose to 168,425 tons, leaping 211% since mid-July. LME copper has lost 4.4% so far this week, on track for the biggest weekly decline since November 2022, but the contract also rose as much as 0.4% earlier in the session as per the latest copper market news that’s incoming.
Further, the concerning outlook in China also pressured demand amid fears of financial contagion from indebted property developers.
As per copper market news articles & reports from S&P Global and the EIA project copper demand to double from the current levels by 2035, missing the International Copper Association’s forecasts of a 26% increase in supply, and raising concerns weighting on the sentiment.
Copper Market News | Technical Outlook
Copper prices witnessed nearly 3% fall in the last three trading sessions. Prices touched its lowest levels 25 May 2023. Today, it traded at 697.25, down 0.32%.
After breaching crucial support 708.00, prices dropped towards 702-698 as per the report release on 25 September 2023.
The Elliot wave drawn on the above chart, is indicating a downward cycle from the peak of 757.75 (high of 1 August 2023). Corrective wave C has been in progress since then. Now, the prices trading its multiple support 692.00. A break below it will confirm downfall towards 670 and below as per the wave count.
Alternatively, failure of the break, will create a probability for a short time pullback towards 710-718.50 again.
Overall sentiment inclines toward downwards, however US Non-Farm Employment Change data due to release tomorrow will drive the next move.
Commodity Samachar
Learn and Trade with Ease
Also Read: Commodity Market News | Spotlight on German President’s Speech. Will it be key agenda today?, Commodity Market News | US Government Shutdown: Did the US avoid a big hurdle?
Recommended Read: Breaking Down 5 Technical Analysis Myths: Let’s Get the Facts Straight!