Copper Soars Despite Fresh US/Iran Attacks
Copper Surging Higher
Copper prices continue to push higher as we head into the weekend with the futures market on track for an almost 9% gain. Indeed, HG is pushing firmly higher even amidst news of the US and Iran exchanging fire in the Strait of Hormuz earlier today. Following news of the attacks, Trump spoke out in support of the ceasefire and said that the two sides were still working on a deal with the US currently awaiting a response from Iran over the proposal it submitted for reopening the Strait and resolving the conflict which is now in its third month. Iran is reportedly due to response to the US within coming days via Pakistan. If any breakthrough is made, this could see risk assets starting next week firmly higher with copper prices likely to push back yup through record highs if a deal is agreed.
Big Risks This Weekend
The risk, of course, is that Iran rejects the US proposal, putting the peace process back to square one. Trump has already warned that the US is prepared to hit Iran very hard I f a dela is not agreed, and the skirmishes seen earlier today show just how quickly the war could be reignited. As such, there is plenty of volatility risk near term with copper vulnerable to a sharp drop lower on Sunday night if Iran rejects the proposal over the weekend and tensions rise once again.
Technical Views
Copper
The rally in copper has seen the market breaking firmly back above the 6.1090 level with price now testing the 6.2845 level. With momentum studies bullish, focus is on a continuation higher with the record 6.5830 highs the big target now for bulls.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 74% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.