- Copper price races past 2011 highs to refresh record highs.
- Global commodity boom underpins copper amid falling Chinese imports.
- Weaker DXY, Chile’s approval of progressive tax rate also help boost copper.
The price of copper (futures on Comex) is extending its two-day rally, reaching the highest level on record above $4.70, surpassing 2011 highs of $4.6495.
Copper prices continue to draw support from a broadly weaker US dollar, as markets have pushed back the Fed’s tapering bets amid the US central bank’s pledge to continue with its accommodative monetary policy until its employment and inflation goals are achieved. A weaker greenback makes the USD-denominated copper cheaper for foreign buyers.
Further, Chile’s lower house approved a progressive rate on copper sales, which is seen as the heaviest tax burden in global mining and it could affect investments, in turn, boosting copper prices. Chile is the world’s leading copper-producing country.
Amid the ongoing uptrend, copper bulls ignore the reports that Chinese copper imports have fallen nearly 13% in April, as higher prices deter the buyers. Meanwhile, Comex copper tracks the futures on LME higher, the bulls took out the critical $10,000 levels on LME earlier this week.
Price of copper: Daily chart
Copper’s daily chart shows that the relentless rise in the prices has driven the 14-day Relative Strength Index (RSI) well into the overbought territory. This suggests that the price of copper risks a corrective pullback any time soon.
Copper prices are closing in on the upper boundary of the one-month-old rising wedge at $4.7088, which also backs a case for a potential move lower.
However, any pullbacks could be a good dip-buying opportunity, as the commodity supercycle seems to have just begun. Copper prices are up almost 29% so far this year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD approaches 1.0700 as USD Index sees more downside ahead of US Employment
The EUR/USD pair is marching towards the round-level resistance of 1.0700 in the early Toyo session. The major currency pair showed a sharp recovery from 1.0640 on Wednesday after the US Dollar Index (DXY) faced intense selling pressure post refreshing a 10-week high at 104.70.
GPB/USD stays firmer past 1.2400 on hopes of more BoE rate hikes, US employment in focus
GBP/USD bulls stay in the driver’s seat for the fifth consecutive day, around 1.2440 during early Thursday. The Cable pair not only cheers the latest retreat of the US Dollar but also benefits from the hints that the UK’s inflation problem are bigger and can push the Bank of England (BoE) towards more rate hikes.
Gold reclaims $1960 on US debt ceiling hopes, falling US bond yields
Gold price advances during the day but remains set to achieve monthly losses of more than 1.30% in May, portraying modest gains, and is trading back above the $1960 area.
Solana price back above $20 as SOL sees a spike in active users
Solana price is back above the $20 range after a bounce from the $18.87 support on May 25. The newly found momentum comes as the number of active users continues to increase. SOL could rise 30% to the $26.30 range high as cryptos attempt a recovery rally this week.
C3.ai Stock News: After 33% rally, AI shares backtrack ahead of earnings
C3.ai (AI) stock slipped 7.6% to $41.62 in Wednesday’s premarket ahead of quarterly earnings expected after the close. This may just be traders taking profits after Tuesday’s 33.4% surge in the AI stock price.