Copper Prices Stabilize Near Record High as Supply Tightness Continues

Copper prices have been on a steady rise due to supply tightness and China's aggressive restocking efforts, leading to a significant demand imbalance. Despite this, technical indicators hint at caution as the price continues to trade near its record high of $6.90.

The US dollar has been curbing copper's upside, with the dollar index holding close to a 7-week high at $100.57. Investors are digesting the Fed's hawkish tilt and geopolitical uncertainties in the Middle East, which is weighing on copper prices.

Copper futures have been trading above their short-term 25-day EMA and medium-term 50-day EMA, with the bullish golden-cross pattern still intact. This suggests further gains in the short term, but a stronger US dollar could tighten financial conditions and pressure copper prices.