Comex copper prices paused their recent losses as buyers stepped in to defend a critical technical level. The red metal was trading around $5.90 per pound, rebounding from the resistance-turned-support zone near $5.85 after late-week weakness.
Support from a softer US dollar and lingering supply concerns has helped stabilize prices. However, the short-term demand outlook remains uncertain, largely due to ongoing stress in China’s property sector, which continues to cloud near-term sentiment.
Copper plays a central role in the global electrification story. It is a key input for electric vehicles, renewable energy systems, power grids, and consumer electronics. Long-term demand fundamentals remain strong as countries push forward with decarbonization, urbanization, and infrastructure upgrades. The rapid expansion of artificial intelligence and data centers has added another structural layer of demand.
Major investment banks remain constructive on copper’s long-term outlook. Goldman Sachs recently raised its average copper price forecast for 2026 to $11,400 per tonne, up from $10,650. The bank cited tight supply conditions, uncertainty around potential copper tariffs, and stockpiling behavior as key drivers. Bank of America has echoed this optimism, projecting prices of $11,313 per tonne in 2026 and $13,501 in 2027, pointing to supply constraints and structurally rising demand.
Despite this bullish longer-term narrative, near-term risks remain. Goldman Sachs has warned that the recent rally may be losing momentum, with the possibility of a corrective phase ahead.
China remains the most important variable for copper in the short run. As the world’s largest consumer and importer of the metal, economic softness in the country continues to weigh on demand expectations. The property sector, a major copper consumer, remains under pressure. Data released on Monday showed home prices in China fell again in December, underlining the depth of the real estate slowdown.
These persistent challenges have increased calls for stronger government stimulus. Until meaningful policy support materializes, the property crisis is likely to remain a drag on copper demand. That said, some concerns were eased after data showed China’s economy expanded by 5% in 2025, meeting official growth targets.
Looking ahead, copper prices are expected to stay sensitive to currency moves and broader commodity trends. A weaker US dollar, geopolitical concerns around potential US tariffs, and strength in precious metals could offer near-term support. Copper has increasingly traded in line with gold and silver during periods of heightened macro uncertainty.
From a technical perspective, bulls are actively defending the $5.85 per pound level. Prices recently pulled back from a record high of $6.15 reached on 14 January but remain above the 25-day exponential moving average, suggesting the broader uptrend is still intact.
Momentum indicators point to consolidation rather than a sharp move. The relative strength index sits near 57, signaling neutral to mildly bullish conditions. In the near term, copper may continue to trade sideways, with support around $5.85 and resistance near $6.10.
On the downside, the 25-day EMA around $5.75 remains a key level to watch. This area aligns with a rising trendline that has guided prices since July 2025 and has provided support since late December. A sustained break below this zone would weaken the bullish technical structure and could open the door to deeper losses.
