Copper Prices Tumble Amid Trade Policy Uncertainty
Copper prices have fallen sharply due to concerns over US tariffs and trade policy. The metal has ended its first weekly loss since June, posting a decline of 1.64% in a single day. This move leaves copper below both its short- and medium-term moving averages but still above its longer-term trend level.
The recent release of stronger CPI data has increased expectations for a Federal Reserve rate hike in September, suppressing industrial commodity appetite for copper. Technical indicators are also aligned in bearish territory, with copper trading below key moving averages and projected to remain in a $6.174 to $6.557 range with a high probability of further downside.
The demand outlook for copper has dimmed due to the uncertainty surrounding US tariffs and rate hike risks. Copper futures have come under pressure amid heightened uncertainties, impacting demand and global trading prospects for the metal. The current analysis reinforces a bearish outlook, emphasizing that traders should closely monitor for a potential break below the established support as downside risk remains high.