Copper Prices Surge Amid Tightening Supply Conditions

Copper futures are currently showing an upside bias due to supply constraints and resilient demand. The most-active contract on COMEX is holding above key support levels, with traders eyeing further gains amid tightening supply conditions and steady industrial demand.

The technical indicators suggest room for additional upside, as the Relative Strength Index (RSI) sits in a bullish zone without being overbought. A breakout above the recent swing high could open the door toward the next resistance zone, while a move below the immediate support at [support level] would negate the bullish setup.

The supply constraints are driven by disruptions at key mines in Chile and Peru, the world's top producers, which have reduced output. Global refined copper inventories remain below seasonal norms, further underpinning the upward momentum.