The red metal jumped amid a deep slide in US dollar index, which fell to two and half year low under 92. An earthquake in leading producer Chile’s Northern region also benefitted the red metal. The commodity dropped thereafter though as profit selling took a toll in US session after a Federal Reserve official said the economy faces substantial risks. The risk of permanent layoffs and business bankruptcies will rise the longer uncertainty related to the coronavirus pandemic remains high, said Fed governor Lael Brainard in a speech Tuesday. COMEX Copper tanked 1.50% to $3.01 per pound as it extended a slide from 27 month high.
Shanghai base metals traded lower for the most part on Wednesday morning, and nonferrous metals on the LME fell across the board, as the dollar index returned above 92 as US ISM manufacturing PMI for August recorded a new high since 2019. But copper prices are expected to strengthen in the short term amid upbeat macroeconomic environment.
TREND : WEAK BULLISH
Time : 02/09/2020
Pivot : 3.0121
Technical View : LONG ABOVE 3.0299
Target : 3.0479, 3.0997, 3.1344
Technical View : SHORT BELOW 2.9847
Target : 2.9574, 2.9237, 2.8709