Copper (XCU) prices are recovering from the strong support as the risk of supply in Chile and US stockpiling support the rebound. However, high prices keep Chinese manufacturers cautious, while a strong US dollar could limit further gains in copper. The US inflation report on Wednesday could shape the next move in the dollar and interest rates. Copper has also gained ground against gold (XAU), adding another signal to watch. In my view, the rebound in copper has room to continue, but prices need to clear $6.95 and $7.10 to strengthen the case for further gains. This article presents the main market drivers, key technical levels and the performance of copper against gold to assess the price outlook for copper.
Copper Price Forecast: Chile Supply Risks Put Record High in Focus
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Key Points:
- Chilean supply risks support the rebound in copper prices.
- A copper breakout above $7.10 could open the way towards $7.50.
- US CPI remains a key test for copper’s recovery.