CMX Copper: Metal Continues to Fall, Reflecting Economic Warnings

Summary:

Despite a new round of mixed U.S. economic data, gold prices fell to their lowest level since April 2020 as the market expects the Fed to raise interest rates more sharply. With the Fed's big interest rate hike, which has weakened the appeal of interest-free assets, gold prices have fallen nearly 8.8% this year. The rise in the dollar is also weighing on gold prices, but the increasingly hawkish stance of European Central Bank officials is curbing the dollar's gains. Meanwhile, a slowdown in China's economy could affect the demand for gold jewelry.

SELL COPPER

Close Time

CLOSED

7725.000

Entry Price

7650.000

7830.000

13554.100 -2.650 -0.02%

4244.5

Pips

Profit

7650.000

7682.555

Exit Price

7725.000

Entry Price

7830.000

1. Fundamentals

Despite a new round of mixed U.S. economic data, gold prices fell to their lowest level since April 2020 as the market expects the Fed to raise interest rates more sharply.

On Sept. 15, Ole Hansen, head of the commodity strategy at Saxo Bank, said, "The market is expecting a 1 percentage point rate hike by the Fed next week, with a terminal rate around 4.5%, which in turn is causing damage." With the potential to influence the Fed's upcoming interest rate decision, stronger-than-expected retail sales didn't provide help either.

With the Fed's big interest rate hike, which has weakened the appeal of interest-free assets, gold prices have fallen nearly 8.8% this year. The rise in the dollar is also weighing on gold prices, but the increasingly hawkish stance of European Central Bank officials is curbing the dollar's gains. Meanwhile, a slowdown in China's economy could affect the demand for gold jewelry.

2. Technical Analysis

2.1 CMX Copper Daily Chart

The key resistance above is at 3.520.

2.2 CMX Copper 4H Chart

The key resistance above is at 3.5040.

2.3 CMX Copper 1H Chart

The key range during the day is "3.4970-3.4770".

Trading Recommendations

Go short on CMX Copper at highs.

Entry price: 7725

Take profit: 7650

Stop loss: 7830

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