You know how copper is like that friend who hangs out a lot with China?
Well, China loves using copper a ton, and when China`s doing great, it wants more copper, so the prices go up. But when China`s not doing so hot, it doesn`t want as much copper, and prices drop.
Lately, copper prices took a nosedive, and it`s because a bunch of stuff happened:
- China shared some not-so-good economic news.
- The big shots (major economic stimulus) in China didn`t really do much to boost the economy.
- The folks over at the US Federal Reserve hinted they might raise interest rates, and that`s never great news for copper prices.
Technical analysis shows that copper prices are stuck in a triangle shape on the charts. This means there`s gonna be a sudden big jump in one direction soon.
Keep an eye out for the next few days because we`ll hear important economic news and what the big bosses are saying at the Jackson Hole Symposium.
If the economic news turns out better than expected, copper might get a little boost for a while. But, here`s the catch – if the US Federal Reserve keeps raising those interest rates, copper might not do so well in the long run. On the flip side, if the news isn`t great, copper might suffer because the world economy is already a bit shaky.
Bottom line, things aren`t looking too bright for copper prices in the short run. But, if China starts doing better and the US Fed takes a break from raising interest rates, copper prices could bounce back later in the year.