Copper prices struggled, and retreated slightly today. As cautious trading noted ahead of key Chinese economic readings due on Wednesday.
Copper futures fell 0.5% to $3.5648 a pound. MCX copper down 0.30% at 696.00.
Adding to this, Chinese copper supply is abundant due to high production and imports in September. However, demand from traditional industries is returning slowly, and copper consumption by emerging industries remains small in scope despite fast growth.
U.S. dollar regained increase ahead of Federal Reserve Chair Jerome Powell’s speech this week, while investors remained cautious over the risk of an escalation in the Middle East war on global economy.
A slew of macroeconomic numbers is due to due release on Wednesday which will have a strong impact on the prices. Third-quarter Chinese gross domestic product data is expected to show further deterioration in growth in the world’s largest copper importer.
Industrial production data for September is expected to show continued weakness in the sector, which accounts for a bulk of Chinese copper demand.
Technical Outlook
Copper prices turned lower from the 9 October 2023 high 714.30 and traded at 696 today, down 0.30%.
Since last one month, prices made a lower low formation and gave more than 5%.
On the above chart, prices are trading at crucial support 695 coincided with previous swing support. A break below it will extend further fall and it could test 692-685 very soon. Alternatively, prices may consolidate around 692-710.00 in near future.