Copper rose to near two-week highs on Monday as expectations of a rate cut by the Federal Reserve signaled a better outlook for demand for commodities like the metal. red. Signs of strength in the U.S. labor market have eased concerns about a slowdown in industrial goods markets. Increase in the last six weeks.
The most traded September copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.4 percent to 73,900 yuan ($10,347.53) a tonne.
Last week, reports on retail sales, inflation and producer prices helped allay fears of an economic downturn in the United States sparked by weaker-than-expected employment data at the start of the month.
Minutes from the Federal Reserve’s July policy meeting and Chairman Jerome Powell’s Jackson Hole speech were the main drivers of currency movements and investor sentiment this week.
In addition, buying on signs of increasing demand in China’s major buyers also supported this.
Copper buyers in the physical market, especially in China, have been largely absent so far, as copper prices rose to $11,100 a tonne in May. Prices have dropped nearly 20% since then and have rebounded.
Technical Outlook : Copper Futures
Copper prices hit a two-week high yesterday. Prices rose above 807.85 to settle at 806.45 compared to the previous day’s close of 801.45.
On August 5, 2024, prices moved favorably from a low of 765.70 to a high of 807.85 yesterday. It has improved by 4%. Based on the chart above, prices are trading at the threshold of the major resistance at 810.50 and a break above that opens the door to a move up to 815.50-819.50.
Otherwise, the breakout will also see consolidation between the 807.50-795.50 region.
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Commodity Samachar
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