Outlook for Copper Ahead of US-China Trade agreement

Source: Forex News

Copper
is an important metal used in the manufacture of electrical appliances. It’s
conduction qualities makes it ideal for use in the manufacture of wires,
electric cables, and also in the manufacture of computer chips. It is also used
in the manufacture of coins.

As
such, copper is a global metal and is often viewed as a barometer of the health
of the global economy. As such, when the global economy is weakening, copper
price tends to be weak. This is because its demand is often constrained.

Most
of the world’s copper is mined by a small group of companies that include Rio
Tinto, Anglo American, BHP, Freeport McMoran, and Codelco. Most of it is mined
in countries like Chile, Peru, China, and United States.

This
year, the price of copper has increased as the Us continues its negotiations on
trade with China. The price has moved from. $2.5 to above $2.9. It has
continued to remain slightly under the $3 mark. These prices are along the 50%
Fibonacci Retracement level. As the talks near conclusion, there is a
likelihood that the price could test the 61.8% Fibonacci level at $3.02. Alternatively,
traders could sell the news and may push the price lower to the 38.2% Fibonacci
level of $2.8.

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