- The price of copper resumes its falls due to a climate of risk aversion and fears about world demand.
- Copper (Comex) threatens to break the $4,000 level, on the LME it breaks the $9,000 level.
- Investors seek refuge in the US dollar.
Copper has resumed its downward momentum after a temporary rebound on Wednesday. The latest move lower in the red metal has knocked rates down to the lowest level since September 2021, and the $4 barrier in Comex futures is now threatened while LME copper futures are already trading for below $9,000, having missed the $10,000 threshold a week ago.
The renewed sell-off in copper is primarily driven by growing concerns over demand for the metal, as the global economy risks a slowdown amid rising inflation and a dovish outlook for the economy. Federal Reserve.
The US inflation data on Wednesday, higher than expected fueled concerns and helped anchor expectations of more tightening by the Fed in coming months, added to fears of slower global growth.
In addition, the COVID restrictions in China with disruptions in the supply chain and the continuation of the war in Ukrainespread concerns about global growth, raising fears about the demand for the red metal.
Source: Fx Street
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