Copper Pushing Higher
Copper prices are continuing to push higher this week with the futures market now once again testing current all-time highs around the 5.20 mark. While other commodities prices have suffered from risks linked to Trump’s tariffs, copper prices have benefitted. Given the concerns around supply chain issues linked top global producer Chile, copper tariffs are expected to put a further squeeze on supply levels, driving prices higher near-term. Indeed, with demand expectations rebounding in China in response to details for fresh fiscal support measures and better data recently, sentiment remains firmly bullish here.
Tariff Impact
News this week that Trump might action a weaker set of tariffs at the upcoming April 2nd tariff deadline, US recession risks have eased too, creating further support for copper prices. Reports that Trump’s tariffs will be more limited in scope have been cheered by risk markets at the start of the week. Provided we don’t hear any pushback from the White House on this story, risk assets should remain supported through the week with copper set to breakout to new highs. Looking ahead today, traders will be watching the latest US PMI readings with copper traders keen to see how the factory sector is performing.
Technical Views
Copper
The rally in copper shows no signs of slowing down. Price is now testing the ATH level at 5.20 and looks poised for a breakout higher, in line with bullish momentum studies readings. To the downside, 48010 remains the key support level to watch with the bull outlook remaining intact while price holds above that level.
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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.