The copper price outlook for the medium to long-term remains upbeat amid signs of a supply deficit and heightened demand from decarbonization, urbanization, and modernization. Nonetheless, its upside potential in the short term has been curbed by the persistent economic uncertainties. Indeed, Dr Copper’s current price action mirrors the jitters in the broader market amid the global selloff.
Copper price action highlights the pressure on the global economy
A day after President Trump signed the funding bill into law, Dr copper has pulled back from the two-week high hit in the previous session at $5.1655. However, it has held steady above the crucial support at $5.0000 since rebounding above it at the beginning of the week.
Notably, the investor sentiment has shifted from optimism over the return of US government spending to a global sell-off amid jitters over the Fed rate cut outlook. As an industrial metal with various uses, copper is often used as a barometer for the global economic health.
From the AI stocks bubble to concerns over the Fed interest rate decision and Chinese economy, a risk-off mood has engulfed financial markets. In fact, the fear & greed index has dropped to an extreme greed level of 24; signaling immense economic uncertainties.
Data released earlier on Friday indicated that China’s economic activity cooled beyond analysts’ expectations at the onset of Q4’25. Sluggish consumption, a plunge in investment, and slower industrial output growth are all exerting pressure on the world’s second largest economy.
For instance, according to the country’s National Bureau of Statistics, fixed asset investment dropped by 1.7% in the year’s first 10 months. Notably, this figure marks a record decline for that timeframe. At the same time, the industrial output’s 4.9% surge recorded in October YoY is the least gain year-to-date. With this, the leading importer and consumer of copper has entered the year’s last quarter on a lower note after the expansion recorded in the past six months.
Comex copper price technical analysis
Copper price chart | Source: TradingView
Comex copper price is set for a weekly gain after being in the red in the previous two weeks. However, it remains range-bound as has been the case since early October. Indeed, at its current level, it is hovering along the middle Bollinger band. Besides, its RSI of 52 points to a sideways trade, at least in the near term.
Based on these technical indicators, copper price may continue to hover around $5.06 as $5.24 curbs its upside movements. On the lower side, a pullback past $4.90 will invalidate this thesis. The copper price outlook for the medium to long-term remains upbeat amid signs of a supply deficit and heightened demand from decarbonization, urbanization, and modernization. Nonetheless, its upside potential in the short term has been curbed by the persistent economic uncertainties. Indeed, Dr Copper’s current price action mirrors the jitters in the broader market amid the global selloff.
Copper price action highlights the pressure on the global economy
A day after President Trump signed the funding bill into law, Dr copper has pulled back from the two-week high hit in the previous session at $5.1655. However, it has held steady above the crucial support at $5.0000 since rebounding above it at the beginning of the week.
Notably, the investor sentiment has shifted from optimism over the return of US government spending to a global sell-off amid jitters over the Fed rate cut outlook. As an industrial metal with various uses, copper is often used as a barometer for the global economic health.
From the AI stocks bubble to concerns over the Fed interest rate decision and Chinese economy, a risk-off mood has engulfed financial markets. In fact, the fear & greed index has dropped to an extreme greed level of 24; signaling immense economic uncertainties.
Data released earlier on Friday indicated that China’s economic activity cooled beyond analysts’ expectations at the onset of Q4’25. Sluggish consumption, a plunge in investment, and slower industrial output growth are all exerting pressure on the world’s second largest economy.
For instance, according to the country’s National Bureau of Statistics, fixed asset investment dropped by 1.7% in the year’s first 10 months. Notably, this figure marks a record decline for that timeframe. At the same time, the industrial output’s 4.9% surge recorded in October YoY is the least gain year-to-date. With this, the leading importer and consumer of copper has entered the year’s last quarter on a lower note after the expansion recorded in the past six months.
Comex copper price technical analysis
Comex copper price is set for a weekly gain after being in the red in the previous two weeks. However, it remains range-bound as has been the case since early October. Indeed, at its current level, it is hovering along the middle Bollinger band. Besides, its RSI of 52 points to a sideways trade, at least in the near term.
Based on these technical indicators, copper price may continue to hover around $5.06 as $5.24 curbs its upside movements. On the lower side, a pullback past $4.90 will invalidate this thesis.
The post Copper price analysis: Global economy through the lens of Dr. Copper appeared first on Invezz
