Copper Prices Ease Slightly as Tariff Impact and Technical Indicators Signal Caution

Copper prices slightly declined today following dramatic gains earlier this week, driven by new U.S. tariffs announced by the Trump administration.

According to official market data, copper futures are currently trading near $5.83 per pound, reflecting cautious sentiment after prices recently peaked around $5.89.

This pullback occurred as traders weighed the market impacts from Trump’s 50% tariff on copper imports, set to begin on August 1. The policy drove an intense buying spree in recent days, significantly tightening supply.

The tariff triggered a substantial increase in imports, leading to lower inventories and increased volatility. Technical indicators from TradingView charts reveal the market is now experiencing signs of cooling.

On the daily chart, copper remains above its 50-day and 200-day moving averages, a traditionally bullish scenario. However, the Relative Strength Index (RSI) indicates copper is in overbought territory, hovering near 75. Such a high RSI suggests possible price stabilization or decline.

Similarly, on the 4-hour chart, the momentum indicator MACD shows declining bullish momentum. Its histogram flattened significantly, indicating waning buyer enthusiasm.

Additionally, the Global Liquidity Index (NDQ), tracking market liquidity, suggests declining overall buying pressure, reflected in its downward slope.

Meanwhile, fundamental market data shows global copper demand rose by roughly 3.3% recently, with China accounting for a majority share.

Despite this rise, China’s copper imports declined approximately 11%, indicating possible internal economic pressure. Production issues from major exporters, such as Chile, are also affecting copper’s market dynamics.

Chile adjusted its copper price forecasts upwards due to persistent disruptions at major mines, notably Collahuasi, highlighting supply-side constraints.

Trading volumes on copper-linked ETFs reflect neutral investor sentiment, as no notable inflows or outflows occurred overnight. Market participants appear cautious, waiting for more clarity on tariff details and their full economic implications.

In summary, copper’s slight decline today reflects mixed market signals. Traders remain vigilant, observing tariff-driven volatility, declining liquidity, and technical warnings of overbought conditions. Copper markets will likely remain cautious until tariff-related uncertainties resolve clearly.

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