Copper price held firm on Wednesday ahead of the Fed interest rate decision and the US PCE index. A stronger US dollar has curbed the red metal’s gains, even as AI trade recovery offer support.
Copper price steadies ahead of Fed’s interest rate decision
Copper price has surged by over 15% year-to-date as supply concerns and uncertainties linked to US tariffs offer support to the market. While those concerns have eased in recent weeks, they bolstered major mining stocks in their Q3’26 earnings. For instance, Freeport-McMoRan exceeded analysts’ estimates for its Q3 profits as copper prices offset production decline at its Indonesian Grasberg mine.
Supply disruptions coupled with steady Chinese demand bolstered the miner’s adjusted earnings to 88 cents a share compared to the estimated 81 cents. Southern Copper Corp’s financial results for the year’s third quarter also beat estimates with record wuarlery net income and sales. Higher copper prices in Q3 have also lifted mining stocks in Australia. Notably, the country is mining-heavy, thus often takes cues from crucial metals like copper.
In the ensuing sessions, the copper market will be weighing the AI trade recovery and performance of the US dollar. The Anthropic IPO filing has helped improve investor confidence ahead of earnings results from major AI stocks like Microsoft and Alphabet. Copper’s vast uses in the electrical and industrial sectors makes it an important metal in AI infrastructure expansion.
Even with these bullish factors, a stronger US dollar is curbing copper price gains. On Wednesday, the dollar index recorded gains for the fourth consecutive session to trade at its highest level in two weeks. The market’s focus is on the FOMC statement later on Wednesday and the US PCE index on Thursday. Amid heightened inflation concerns, a hawkish tone from the Federal Reserve may bolster the greenback while weighing on dollar-priced assets like copper. Besides, as a conventional bellwether for the global economic health, the Fed’s tone, economic uncertainties, and overall market sentiment continues to impact its price movements.
Copper price technical analysis
Copper price held firm on early Wednesday after three consecutive sessions in the green. Late last week, the red metal dropped to a one-month low. It has since rebounded to a two-week high at $6.66 a pound on Tuesday. At the time of writing, it was holding firm around that level, trading at $6.65.
A look at its daily chart hints at range-bound trading in the short term as the market awaits a fresh catalyst. More specifically, the bulls will be keen on defending the support along the 50-day EMA at $6.59. A strong support along that zone will maintain copper price above the months-long trendline.
In line with these technical indicators, the range between $6.59 and the resistance at $6.69 is worth watching. Further gains will likely be curbed at $6.72.
On the flip side, a decline past the support level of $6.59 will push the metal back below the crucial trendline. That will give the sellers a chance to retest the lower zone at $6.52.
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