Copper price is up for the second consecutive day as investors react to news that US and China have postponed a review of the first phase of the trade deal. The metal is up by 0.50% while other base metals like aluminium, lead, and nickel are up by 0.80%, 0.40%, and 1.63%, respectively. Similarly, other precious metals like gold, silver, and palladium are in the green.
Copper price is mostly reacting to news that China and the US have postponed a review of the first phase of the trade deal that was signed in January. The two sides were supposed to meet virtually on Saturday but did not meet because of scheduling reasons. The postponement was also supposed to allow China to boost its imports of American goods.
Delaying the review is a good thing, according to analysts interviewed by CNBC. That is because China has already signalled that it is willing to buy more goods. Also, it is a good thing because of the falling ratings of Donald Trump. The latest opinion poll showed that he was trailing Biden by 10 points.
Copper price is also rising because of the falling US dollar. The dollar index, which measures the performance of the greenback against a basket of currencies, has dropped by 0.15%, and is trading at the lowest level since last week. A weaker US dollar is usually a positive thing for metals like copper that are priced in dollars.
Copper price is trading at $2.8647, which is slightly higher than last week’s low of $2.7637. On the daily chart, the price reached a high of $2.9691 on July this month. The price is still above the 50-day and 100-day exponential moving averages.
The price has also formed a bearish channel that is shown in black. This channel appears to be a bullish flag, which means that the price is likely to break out higher. If it fails to break out in the current wave, the price is likely to attempt to retest the lower side at $2.7682.