Copper Price Update: Key Support in Focus—Will It Stand Strong?

The Copper price fell sharply on Thursday as funds sold their bullish positions on concerns that high interest rates will limit demand for the metal, particularly in China.

Copper price on the London Metal Exchange HG1! fell 2.9% to $10,153 a tonne from last week’s record high of $11,104.50. MCX copper fell 2.92% to 877.20

Copper and other metals pared losses briefly after data showed U.S. economic growth was weaker than expected, weighing on the dollar index

DXYA softer dollar makes commodities priced in the U.S. currency less expensive for buyers using other currencies. LME copper was at risk of a deeper correction that could take it down to $9,700, but at that level, buying was likely to kick in due to a bullish medium and long-term outlook by most investors, Hansen added.

Demand for the metal has been robust, underpinned by solar and electric vehicle sectors.

Furthermore, Chinese manufacturing activity unexpectedly contracted in May, purchasing managers index data showed on Friday, as an initial boost from bumper stimulus measures by Beijing now appeared to be running out of steam.

Manufacturing PMI read 49.50 in May, data from the National Bureau of Statistics showed. The reading was weaker than expectations of 50.5, and contracted from the 50.4 seen in April.

A reading below 50 indicates contraction, with the manufacturing PMI now shrinking after two months on expansion. The number could be weight on the sentiment.

Technical Outlook – Copper Price

The Copper price witnessed nearly three percent drastic fall yesterday. That was worst intraday performance after 22 May 2024. Prices made a low 871.35 and settled at 877.20 compared to previous day’s close of 903.55.

Formation of a long bearish candle stick is indicating for a aggressive selling pressure on the prices. Adding to this, Prices breached their previous support levels, which also adding to the sentiment.

Today, immediate support will be seen at 868.50 a break and sustain below it could retreat towards 855-850.00. Else, prices expect to consolidate in between the range of 870-900 levels.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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