Copper Holds Near Highs
Copper prices exploded higher yesterday, clocking a more than 18% one-day gain, the largest single-day move since the 1980s. The rally came in response to news of Trump threatening a 50% tariff on copper imports. Speaking during a White House meeting, the president signalled his plans to dramatically change the fees for US-bound copper shipments. Copper has seen strong demand this year ahead of expected tariffs with importers looking to stock up on the metal ahead of those levies coming in.
Traders Waiting on Further Details
However, with Trump now signalling a much more aggressive tariff amount, copper prices ballooned as global inventories tanked on a surge in speculative buying. While the metal has cooled from the initial reaction highs printed yesterday, copper futures remain above the prior all-time highs of 5.3625 and look poised to continue higher while they remain atop that level. Traders will now be carefully monitoring incoming news for details on the tariff, regarding and timing and clarity on which copper products will be included. For now, however, the market looks set to remain in bull territory as traders continue to front run tariffs being implemented. Once tariffs come into effect, however, copper prices are vulnerable to a sharp move lower as demand dries up.
Technical Views
Copper
The surge higher in copper yesterday takes the market into uncharted territory. While above the 5.1985 level, focus is on a continuation higher, in line with bullish momentum studies readings. If prices do move back under 5.1985, 4.8010 will be the next support area to watch.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.