Copper Falls Below Key Levels as Global Demand Weakens

Copper futures fall below key levels of support today as a slowdown in global demands weigh on the metal. The price of copper has widened at its biggest discount as markets remain concerned over China’s industrial rebound. Higher interest rates globally has made suppliers skeptical of storing the metal due to higher financing cost from banks. Simply it’s cheaper to distribute the metal on demand versus in the future.

Meanwhile here in the West, manufacturing slowdown signals that the metal is being priced for recession. In addition, Biden’s administration pauses mining exploration due to the lack of support and permission from Indigenous tribes in the region.

We could see further depreciation into key areas of support around $3.50ish (/HG | Comex) as pressures globally pushes price dow. Further selling pressure around this key level may cause a major breakout towards $3ish levels.

Lets see how the 🎲 roll.

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