Copper Price Forecast: Is $7.50 the Next Target Despite Fed Risks?
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Key Points:
- China’s manufacturing PMI rose to 49.8 and offered limited support for copper demand.
- A stronger U.S. dollar and rising Fed rate hike expectations could limit short-term gains.
- Copper remains bullish above $6.00, with a break above $6.90 targeting $7.50.
Copper (XCU) prices remain close to record highs as the improvement in factory activity in China supports the demand outlook. But the weakness in construction and real estate, a stronger U.S. dollar and growing expectations of another Fed rate hike could limit gains in the short term. This article examines the latest macro developments, copper price charts and the silver (XAG) to copper ratio to determine the next move in the copper market.