![Copper Price hits 2-year high, will it continue?](https://commoditysamachar.com/wp-content/uploads/2024/05/BLOG-14-1-1024x576.jpg)
Copper prices hit a two-year high yesterday as rising long-term demand and tight supply fueled a shortage and hopes of a US interest rate cut prompted investors to pile into the market on Monday.
Copper’s key role in global electrification, from charging electric vehicles to storing energy on the grid, has fueled ambitious predictions about the metal’s usefulness.
This was magnified by piling bets of copper usage in artificial intelligence and automation infrastructure.
Meanwhile, the latest data showed that China imported more ore inputs despite the sharp increase in prices, underpinning demand from manufacturers.
Adding to this, Chinese inflation data, released over the weekend, showed a pick-up in CPI inflation. But PPI inflation, which is a key indicator of local factory and business activity, shrank for a 19th consecutive month.
But the mixed inflation readings were offset by Beijing loosening more restrictions on the beleaguered property sector, which could potentially support copper demand in the coming months.
In turn, the low availability of material hampered margins for smelters in China, responsible for over half of global supply, resulting in a potential 10% output cut this year. High costs of committing to new mines drove giant miners toward M&A activity instead of starting new projects, recently headlined by BHP’s attempt to buy Anglo American.
Focus will shift on US PPI numbers due to release later today, and CPI on Wednesday.
Technical Outlook
![](https://commoditysamachar.com/wp-content/uploads/2024/05/COPPER1_2024-05-14_07-42-30.png)
Copper prices touched a high 884.55 and settled at 883.50, up 1.58%.
Formation of a long bullish candle stick on the chart is indicating for bullish momentum in a near future. Further, RSI 14 and its 9 SMA is still supporting for the recent momentum.
Hence, a break above 885.00 is expect to open the door for next 895-910.00
Else, any dip towards 872-869 will attract buying activities with stop loss below 860.00
Also read-Economic Data in Focus: US PPI, Fed talk and UK unemployment data! Nifty & Bank Nifty Rebound: Time to Re-enter the Market?
Recommended read-Breaking Down 5 Technical Analysis Myths: Let’s Get the Facts Straight!
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