- Copper price is under pressure as geopolitical tensions impact the global economic health.
- Comex futures are below a crucial support zone even as bulls strive to find its short-term footing.
- Decline in Chinese inventories, and the long-term demand outlook, have offered some support.
Comex copper price remains below the crucial support level of $5.50 per pound amid the uncertainties linked to the ongoing US-Iran war. Trump’s assertions that both parties have had “productive talks” yielded a relief rally in the stock market. However, as a global economic bellwether, Dr. Copper remains under pressure from the heightened inflation concerns. Nonetheless, a decline in Chinese inventories, and the long-term demand outlook, may help the red metal in finding its short-term footing.
Long-term demand outlook spares copper price from oversold zone
The ongoing US-Iran war has had far-reaching implications, with financial markets showing it all. In recent sessions, various assets have been reacting to the surge in crude oil prices, heightened inflation concerns, and investors’ shift in the expectations of central banks’ monetary policies.
In the currently headline-driven market, the precious and industrial metal prices have been highly volatile. For instance, gold, which is a conventional safe-haven asset has plunged by about 20% since the start of the war. Investors are increasingly betting on a hawkish Fed, which tends to be bearish for the non-yielding bullion.
Likewise, the uncertainties have pushed copper price below the important support level of $5.50 per pound. As an industrial metal with vast uses, Dr. Copper is considered a global economic bellwether. A fall in prices often indicates slowing demand and instability in the overall economic health.
On the one hand, the long-term demand outlook remains bullish. Besides, Chinese inventories recorded their largest weekly drop of 2026 in the past week. The decline in global copper prices has buoyed demand in the second-largest economy as fabricators step up purchases to meet the rise in new orders. The increase in Chinese demand has been boosted further by the end of the prolonged Lunar New Year holiday. While these bullish drivers will likely offer short-term footing to the red metal, investors remain glued to the headlines.
Copper price chart | Source: TradingView
On Monday, the Comex copper futures dropped to their lowest level since 3rd December 2025 before rebounding back above the crucial support level of $5.50 per pound. However, amid the volatility, it is back below that zone; trading at $5.43 as at the time of writing.
Since the start of the US-Iran war, the red metal has dropped by over 10%. Nonetheless, it has held off the oversold territory amid hopes over the long-term demand outlook. At an RSI of 36, it has some room to rebound.
In the immediate term, investors continue to weigh on the intensity of the geopolitical tensions in the Middle East, especially after Trump’s recent statement. Indeed, the ‘wait and see’ sentiment in the broader financial markets has the short-term 25-day EMA and the medium-term 50-day EMA converging around the support level of $5.75. Prior to the plunge recorded about a week ago, that zone offered steady support to Comex copper price since the start of the year.
The possible formation of the bearish death cross pattern, where the 25-day MA crosses the 50-day MA to the downside, may have the prices facing resistance at the crucial zone of $5.50. On the flipside, a rebound past that level would place the next target at $5.59.
