Home Forex News Copper Hits One Week High On Chile Output Worries

Copper Hits One Week High On Chile Output Worries

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Copper soared amid a massive spurt in US equities last night. DOW jumped impressively as traders continued to focus on the US economic stimulus. The red metal jumped more than 2% to hit a one week high of $3.02 per pound.

Leading Copper miner Chile produced 481,700 tonnes (t) of copper in August, down 6.2% from the 513,300t produced in the same period of 2019, according to state copper agency Cochilco. Traders are also worried about concern about potential mining strikes on wage negotiations.

Chinese markets will be closed Oct. 1-8 for the Golden Week holiday. The three-month price of copper on the London Metal Exchange was higher at the close of trading on Wednesday, while doubts over an economic recovery package in the United States have put little pressure on a broadly positive LME base metals complex. The discount on LME cash copper against the three-month contract stretched to $14.25 a tonne, its biggest since June 22, indicating healthy nearby supplies. LME copper inventories have doubled over the past two weeks. A workers union at the Candelaria copper mine in Chile rejected a contract offer from Canada’s Lundin Mining, union officials said on Monday, raising the possibility of a strike.

TREND : SIDEWAYS

Time                                      :           08/10/2020

Pivot                                     :           2.9931

Technical View                     :           LONG ABOVE 3.0286

Target                                   :           3.0641, 3.1137, 3.1821

Technical View                      :           SHORT BELOW 2.9676

Target                                   :           2.9421, 2.8747, 2.8241

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