The latest copper market news is in and copper prices witnessed some strength yesterday. U.S. dollar posted some losses after the Federal Reserve kept interest rates unchanged supported in recent gains, along with concerns over supply disruptions.
The dollar fell broadly against its major counterparts, with risk-sensitive Asia-Pacific current cities leading gains as investors grew more convinced of a likely peak in U.S. interest rates after the Federal Reserve left them on hold.
Fed Chair Jerome Powell left the door open to another hike, but with the funds rate target ceiling at a 22-year high of 5.5% he said the risks of doing too much or too little were now balanced.
Adding to this, China spot premium for refined copper eased from a two-month high touched earlier this week, following more arrivals of imports and improved supply in the market as per the latest copper market news coming in. Concerns around supply disruptions also lent support to prices.
Netherlands-based Nyrstar plans to temporarily close two zinc mines in the U.S. state of Tennessee in November-end due to weak prices and the impact of inflation, Reuters reported on Wednesday.
Focus now turns to the Bank of England and whether it conveys a similar message at today’s policy announcement.
Copper Market News | Technical Outlook
Copper prices paused their bearish momentum. Since 23 October 2023, prices enjoyed a recovery rally from the low 689.50 to the recent high of 711.80. Today, prices traded at 710.80, up 0.59%.
On the above chart, recent prices action resulted in a formation of a rounding bottom pattern, which indicates further gain in the near future. However, prices would need to break its immediate resistance 715.20 in order to test the next resistance 720.00-724.80.
Alternatively, any dip towards 705-702.50 could attract some buying activities.
On the downside, crucial support is seen at 686.50 and a break below will lead selling pressure towards 675-665.00.
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