Copper Price Hits Three-Week High: Is a Breakthrough on the Horizon?

Copper at Three-Week High: Is a Breakthrough Imminent?

Today’s copper price news looks quite interesting.

The price of copper rose to a three-week high on Friday. Prices rose for the first time in seven weeks, with the prospect of US interest rates supporting sentiment in growth-dependent metals.

MCX Copper touched a high 881.70, up 0.82%. Three-month copper HG1! on the London Metal Exchange (LME) rose 0.7% to $9,946 a metric ton, after hitting $10,000 for its highest since June 12. The contract is up 3.6% this week.

U.S. Comex copper futures (HGc2) gained 2.4% to $4.64 a lb as some players bought back bearish, or short, positions to reduce their exposure due to expected shipments of copper failing to arrive in the United States.

U.S. job growth slowed marginally in June, but a rise in the unemployment rate to more than a 2-1/2-year high and moderation in wage gains pointed to an easing of labour market conditions that keeps the Federal Reserve on track to start cutting interest rates this year.

Copper, used in power and construction, is down 10% since speculative buying took prices to a record high of $11,104.5 on May 20.

This decline revived some demand in top consumer China, tightening the discount to import copper into the country to $2 a ton from $20 in May. (SMM-CUYP-CN)

However, rising inventories were limiting potential for further copper gains. Inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.7% this week while LME data shows that stocks in the LME-registered warehouses have climbed to their highest since October.

Technical Outlook of Copper Price

Copper jumped to a high of 881.70 on Friday and settled at 875.25, up from 868.15 the previous day.

Since June 28, 2024, prices have turned positive, recovering from a low of 832.10 to a recent high of 832.10. Copper prices are now trading near key resistance at 884.20, which is the same as the previous demand area.

Even more could happen if prices lower and stay above 884.20. It might test the next resistance at 895-900 in the near future.

Otherwise, prices may stabilize between 880-865.

Happy Trading!

Commodity Samachar
Learn and Trade with Ease

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