Copper price is plunging today; Is it still in a supercharged rally?

Copper Price

Copper price declined by more than 0.86% today as traders continued to worry about the rising number of coronavirus cases. The metal is trading at $2.7477, which is slightly below the day’s high of $2.7766. Other metals have declined too, with gold, silver, and palladium down by 0.52%, 1.26%, and 0.90% respectively.

Chilean copper exports jump

Chile is the world’s biggest copper producer. Therefore, traders pay close attention to the amount of copper that is exported from the country. According to the country’s central bank, the country exported copper worth more than $2.6 billion in June. That was the second straight month of gains after exporting copper worth more than $2.56 billion in May. This is evidence that the country is returning to growth, boosted by higher demand from China.

However, the biggest challenge for copper is that the number of coronavirus cases in the country is elevated. Just last week, workers at a union said called for a probe after several deaths in a plant owned by Codelco. This is a state-owned company that is also the biggest miner in the country. Other companies operating in the country have also reported some coronavirus-related disruptions.

Copper price falls as second wave fears remain

The price of copper declined mostly because if the rising number of coronavirus cases in the United States and Australia. Earlier today, Australian authorities announced that they were closing the border between Victoria and Melbourne.

This means that lockdowns could return in countries that have resumed operations like in Europe. As a result, this would affect demand for the metal, which is widely known as the barometer of the world economy.

Copper price technical analysis

Copper price is trading at $2.7477, which is above the 50-day and 100-day EMAs. The price is also above the 78.6% Fibonacci retracement level. It is also above the ascending trend line shown in pink. Therefore, even with the today’s decline, the price is likely to continue rising as bulls attempt to test the important resistance at $2.800.

On the other hand, a move below $2.6858 will invalidate this trend. This price is along the lowest level on June 29. It will mean that there are more sellers in the market, who will be keen to push the price lower.

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Copper price forecast

Copper Price

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