Copper Futures Hold Upside Bias Amid Supply Constraints and Steady Demand

Copper futures on the COMEX have maintained an upside bias due to a combination of technical indicators and fundamental factors. The contract has been forming higher lows and higher highs, with its 50-day moving average trending upward and the Relative Strength Index (RSI) in a bullish zone.

The supply constraints, declining inventories, and steady demand from the energy transition and industrial sectors are driving the move upwards. Disruptions at key mines in Chile and Peru have reduced output, while global refined copper inventories remain below seasonal norms.

Traders are also monitoring economic data releases, particularly from China, which will provide clues on the strength of industrial demand. Changes in monetary policy could influence the dollar and, in turn, copper prices.