Copper Rallying on Thursday
Copper prices are pushing higher again today with the futures market breaking out above the late April highs which have capped price over the last six weeks. The move looks linked to the wider move higher we’re seeing across metals markets, led by the breakout move in silver today. A weaker US Dollar on the back of surprisingly soft jobs data yesterday is helping fuel demand across the board today in metals. Looking ahead, traders will be watching tomorrow’s headline NFP data set. If further weakness is confirmed, this should keep USD pressured into next week allowing metals prices room to push higher. Indeed, if we see any downside surprise tomorrow this could see current metals buying accelerate.
Trade Uncertainty Helping Copper
Copper prices are also being supported, even if counterintuitively, by tariff fears. A surge in demand ahead of expected copper tariffs is helping feed into bullish sentiment here. With industry data reflecting heavy runs on LME copper warehouses with the metal being taken back to the US ahead of any incoming tariffs. This comes at a time when supply concerns have moved back into focus with news that Canadian miner Teck Resources are having major issues in Chile, expected to last several months. Against this backdrop, copper prices look poised for further upside near-term.
Technical Views
Copper
The rally in copper has seen the market breaking firmly back above the 4.8010 and back up into the bull channel. With these support elements holding below and momentum studies turned firmly bullish, focus is on a continuation higher and a test of the 5.1985 level next ahead of YTD highs.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.