Recently, copper shows a mixed trend. But at the current stage of the red metal has a chance to rise. As it became known on Friday, PBOC has taken steps to mitigate the monetary policy. In particular, the reduced rate on loans by 0.25 percentage points – to 4.35% and the reserve ratio for banks by 50 basis points. This tempered fears of a sharp decline in demand from China, which accounts for about 45% of world consumption. In addition, several companies previously announced plans to reduce the amount of copper mining. Such plans announced Glencore and Freeport-McMoRan. Also, do not forget about the upcoming publication of the decision on Wednesday, the US Federal Reserve‘s monetary policy. If the US regulator will be soft enough, the dollar will come under pressure across the board and it will be an additional catalyst for the growth of quotations.
In the district level 2.3483 quotes to form a support. If this barrier is not passed, it may reactivate the “bulls“, which will lead to a resumption of growth of quotations metal in the area of highs recorded in mid-October 2015.
|Copper price chart|