Copper Price Tumbles as Strong Dollar and Profit-Taking Take Hold
Copper prices have been under pressure in recent sessions due to profit-taking and a strong US dollar. The Comex copper price is currently trading at $6.61 per pound, having moved away from its recent record high.
The stronger greenback has rendered copper and other dollar-priced assets more expensive for buyers holding foreign currencies, dampening demand. Meanwhile, concerns over tight supply continue to support copper prices, with analysts expecting a sharp drop in scrap copper supply in Q4'26.
A decline in scrap copper supply is expected to fuel a strong support to copper price, with some analysts projecting an average price of $14,500 per tonne in Q4. The technical indicators point to a choppy market in the near term, with the relative strength index at 47 and pointing downwards.
The range between the 50-day EMA at $6.57 and the resistance at $6.80 is worth watching, as further rebounding may be curbed at $6.84, while further losses may test the lower level of $6.54.