Copper peaked at the 38.2% target at 5.08 and has since moved lower. It is expected to continue lower towards at least 3.87 and more likely closer to the 50% corrective target at 3.51 in the weeks and months ahead.
The weaker copper indicates that the global economy is weakening and is moving into a lower gear, which seems to go hand in hand with the major central banks hiking their interest rates to get a grip on the rising inflation. Just yesterday, we saw the Fed hiking its rates by 50 bps that came as no surprise. So, the rate hike was already priced in, but still it's a clear shift in economies and we are facing difficult times ahead.
