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.