Bearish
Copper prices decline as profit-taking and stronger dollar pressure the market
In the past 24 hours, copper prices have retreated from near-record highs due to profit-taking and a firmer U.S. dollar. Benchmark three-month copper on the London Metal Exchange (LME) fell 1% to $14,606.50 per ton, after reaching a peak of $14,833, the highest since September 10. The stronger dollar has made dollar-denominated copper more expensive for investors using other currencies, contributing to the price decline.
Key points
- Profit-taking: After testing technical resistance above $14,800 per ton, investors sold off positions, leading to a price drop.
- Stronger U.S. dollar: The dollar's appreciation has made copper more expensive for holders of other currencies, dampening demand.
- Inventory shifts: Increased copper inflows into U.S. warehouses have drained inventories on the LME and in China, potentially tightening supply.
- Upcoming data releases: Traders are awaiting U.S. economic data, including a Treasury bond buyback and August Consumer Price Index figures, which could influence future copper prices.
Sources
AI-generated from public news sources. Not financial advice.
