Copper is healthily above the 20-, 50- and 100-day moving averages, and has shown no sign of losing its momentum. The demand that was driven by Chinese consumption, however, would appear to be a little on the thin side. China is the largest producer as well as the largest consumer of copper, and has seen a relaxation of government regulation as well as a potential oversupply to the market.
As in so many sectors, commodities – copper especially – has felt the expectations of next week’s Federal Reserve Open Market Committee statements hanging over its prices. Plenty of economic data is also being released on Monday, including manufacturing figures for all the major producers in Europe.
The picture for supply still looks very full for next year, as a number of mining companies have stated they are likely to increase production for the year ahead; but with so many important catalysts likely to appear, a cautious stance on the metal would be advisable.