Copper (XCU) dropped toward $6.60 on Monday as a strong US dollar and weaker data from China put buyers on the defensive. The drop in copper stocks and contract talks at Escondida mine in Chile could help limit the decline. Copper has gained ground against gold (XAU) and silver (XAG), but the price action in the short term shows pressure near the 50-day average. In my view, copper needs to hold $6.60 to keep a recovery toward $6.95 in sight. This article presents the forces behind the copper rally and the technical levels to understand the next move in copper.
Copper Price Forecast: Weak China Data Test $6.60 as Escondida Vote Begins
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Key Points:
- Copper’s next test is whether buyers can defend $6.60.
- Slower profit growth in China raises doubts about copper demand.
- Escondida’s contract vote keeps supply risk in focus.