Weekly Copper Review: COMEX futures stay slippery to test three-month low

Copper fell sharply as global metal markets witnessed a massive wave of correction in last few days. The red metal has been falling consistently after breaking under $6 per pound mark earlier this month and tanked around 8% this week to test three-month low. Markets tracked the US-Israel war with Iran and sustained losses in equities are taking a toll on sentiments. Copper is sinking amid rising inventories on the LME and a weak US economic output data clubbed with general sense of concern over the US housing market can weigh on the metal in near term. The confidence among US home builders inched higher in in March from last month, but builders still continued to express affordability concerns stemming from elevated construction costs and general concerns owing to ongoing war. A rise in US mortgage rates will keep the scenario twisted in near term. The average US long-term mortgage rate has jumped to 6.20%, hitting highest in more than three months. This will likely cap Copper after the metal lost 12.5% this month.

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