Copper Price Volatility Ahead of US Inflation Data and Fed Chair Speech

Copper prices remain volatile as investors weigh various market drivers, including US inflation data and Federal Reserve Chairman's speech. Despite a surge in US imports and eased bets on a September interest rate hike supporting the metal, rising inventories and economic uncertainties are curbing its gains.

US importers shipped over 200,000 tonnes of copper in July, the highest monthly import in 12 years. This has led to a significant increase in stockpiles, with the country's inventory exceeding 1 million tonnes.

The influx of copper into US warehouses has eased some pressure off prices, but investors remain cautious due to uncertainty surrounding potential taxes on refined copper imports. The White House has yet to announce any plans for tariffs, and the deadline for the Commerce Department's recommendation passed in June.

Comex copper futures edged lower on Monday, continuing volatility observed in the past week. Despite a weekly loss, copper prices remain above their short-term 25-day EMA and medium-term 50-day EMA.