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Copper and most other base metals continued to find support in the weakening U.S. dollar Friday amid expectations of a slowdown in July job growth in the United States ahead of a much-anticipated jobs report later in the day.

Copper prices posted a three-day loss earlier in the week due to weak global factory data and escalating tensions between the United States and China following the visit of U.S. House of Representatives Speaker Nancy Pelosi to Taiwan.

The recent rebound was mainly attributed to technical buying and a weaker dollar due to signs of softening in the labor market. A weaker dollar translates into lower costs for commodity buyers using other currencies.

Copper has experienced a technical rebound since mid-July 2022 from lows in the $6,950/mt area, returning to $7,950/mt (+14.38 percent). A potential continuation of the current price climb toward the short-term target in the $8,500/ton area is expected.

Aluminum remains in a consolidation phase at period lows in the $2400/mt area. Potential subsequent recoveries toward the $2,500/mt and $2,600/mt areas cannot be ruled out.

 

After its excellent performance on Aug. 4 (+5 percent on the day), zinc remains projected in the short term toward targets in the $3,600/mt and $3,700/mt area.

Stay tuned to Commodity Evolution for key industry market updates.

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