Copper Price Forecast: Chile Supply Risks Put Record High in Focus
By Muhammad Umair | Published: Oct 12, 2026
Key Points
- Chilean supply risks are contributing to a rebound in copper prices.
- A breakout above $7.10 could pave the way for prices to reach $7.50.
- The upcoming US Consumer Price Index (CPI) report is crucial for copper's recovery trajectory.
Copper Market Overview
As of October 21, 2026, copper prices (XCU) are at 6.45473, reflecting a decrease of 1.22%. The market is currently neutral, with technical indicators suggesting a mix of sell, neutral, and buy signals.
Key technical levels from the October 20 session include:
- Support Level (S1): 6.46650
- Pivot Level: 6.51870
- Resistance Level (R1): 6.58670
Technical Analysis
The recent recovery in copper prices is attributed to supply risks in Chile and increased stockpiling in the US. However, elevated prices are causing caution among Chinese manufacturers, and a strong US dollar may hinder further price increases.
The upcoming US inflation report is expected to influence the dollar's movement and interest rates, which are critical for copper's price trajectory. Additionally, copper has shown strength against gold (XAU), indicating a potential bullish trend.
For a sustained rebound, copper prices need to surpass the resistance levels of $6.95 and $7.10, which would strengthen the case for further gains.