Copper falls on global growth concerns, firm dollar

Chicago copper futures

The price of Chicago copper futures is down 1.46% at $4.3895 per pound on early-Thursday trades.

Copper price surged last week after China launched a $120 billion credit line for mega infrastructure and Green Energy projects to stimulate the economy.

Commodities, including copper, are at hovering at an all-time high price and facing a historic shortage off the back of a “triple deficit” – low inventories, low spare capacity, and low investment. As per the World Bank’s commodity market outlook, copper prices are expected to be more than $4/lb. until 2024. Chile, the world’s top copper producer, saw exports of the red metal reach $3.76 billion in May, down 18.3% YoY.

Copper possesses properties that give it a central role in the drive towards a greener future, particularly the red metal’s ability as an electrical conductor. With the increasing global adoption of green technology, copper’s future looks bright.

Peru, the world’s second largest copper producer is facing production concerns as protests erupted across the country’s mines. Peru’s government called for a new round of talks with protesting indigenous communities that have forced MMG Ltd’s Las Bambas copper mine to suspend operations for over a month.

On the technical side, the RSI of Chicago copper futures stood at 48.02 and is currently trading above MA (5) but below MA (20) and MA (50). SO, SELL position can be taken with the following target and stop-loss:


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