Copper Price Forecast: Strong Dollar Limits Gains Despite Supply Risks
By Muhammad Umair | Published: Oct 05, 2026
Key Points
- China's efforts to secure copper supplies keep supply risks in focus.
- A strong dollar and high energy costs could limit copper's recovery.
- A break above $6.95 could bring $7.50 into view.
Copper Market Overview
As of October 6, 2026, copper prices (XCU) are at $6.55172, reflecting a slight increase of 0.09%. The market has seen copper prices consolidate in a range after reaching a record level of $6.95 in September 2026. The overall trend for copper remains bullish, with prices gaining over 15% throughout 2026.
Supply and Demand Dynamics
China's ongoing push to secure copper supplies, particularly in light of risks associated with production in Chile, continues to be a significant factor influencing the market. The strong US factory orders provide additional support for copper prices; however, the strength of the US dollar and elevated energy costs are making copper purchases more expensive, which could hinder further price recovery.
Technical Analysis
For copper to maintain its upward trajectory, it is crucial for prices to stay above the $6.50 mark and attract robust physical buying. The technical levels from the October 2 session indicate a support level at $6.42550, a pivot point at $6.48070, and a resistance level at $6.53560. A breakout above the $6.95 level could potentially lead to a target of $7.50.