Copper

Copper’s explosive move higher has been fuelled by AI infrastructure demand, tightening supply chains and Gulf-related disruption fears. The problem now is whether too much good news is already reflected in the price.

Copper surged over 30% YTD on Comex to reach a 5-month high of $5.90, while Copper jumped above $12,000 on LME, a record high, up 42% this year.

Today has been another solid day for both precious and to a lesser degree base metals: Gold has surged almost 2% to $4,100; silver was last 3.7% higher at $52 and copper was up a cool 3.4%. All these metals have been in good form and the trend continues. Copper, which has been lagging, is only now catching up with PMs.

In this copper analysis article, we highlight reasons why prices could be moving even higher. US copper prices have made a decent comeback in recent months, kicking off October with renewed momentum after the sharp slump seen at the end of July. Prices remain supported as supply disruptions and a weaker dollar fuel momentum.

Copper, Silver Outlook: Copper is holding above a 14-year resistance level following the 50% tariff announcement, while silver has surged to new 2025 records above $37.50, surpassing its 2012 highs.

Despite the OPEC's urgency to bring back more supplies online, oil prices have stopped falling further since that sharp de-escalation in the conflict between Israel and Iran a couple of weeks ago. What’s driving prices and what’s in for the crude oil outlook?

The upside in copper flagged last week has played out nicely, delivering a fresh contract high for the red metal on COMEX futures. However, the price action over the latter parts of this week has not been convincing, warning of growing near-term downside risk.

The stronger US dollar has acted as a handbrake on commodity prices, limiting what may have been otherwise a spectacular rebound to start 2024. Imagine what may happen if the dollar were to break down?

Those considering buying the break may want to look at copper’s lousy track record when it’s been this overbought on the four hourly chart in the past.

Gold, silver and copper all rally as US dollar drops despite hot inflation, with base metals finding additional boost from optimism about Chinese demand. Silver analysis suggests the grey metal could be in for more gains, while gold analysis point to a new record high.

Traders were their most bearish on the US dollar against all currencies in four months, despite the Fed's attempt to push back on multipole rate cuts this year.

AUD/USD could be vulnerable to more selling pressure amidst soft inflation data and ongoing weakness in Copper prices