Commodity Radar: MCX copper slips as Trump’s 50% tariffs kick in tonight. Here’s how to navigate the storm?

MCX copper contracts traded lower on Tuesday as the 50% US tariffs came into effect from midnight on Wednesday, August 27, despite positive sentiment in the international copper market.

A draft notice from the Department of Homeland Security on Monday outlined the implementation procedures, while a planned August 25–29 visit by US trade negotiators to New Delhi was abruptly cancelled.

On the MCX, September copper futures were at Rs 888.50 per kg, down Rs 2.05 or 0.23%. On the COMEX, prices stood at $4.4825, up 0.53%, while three-month contracts hovered around $9,796.50 per metric ton, higher by 0.74%.

Ajit Mishra, Senior Vice President, Research at Religare Broking, noted that dollar-priced commodities like copper have gained fresh impetus from the weakening greenback following Fed Chair Jerome Powell’s hint of a possible US rate cut by September.

“Demand remains structurally strong, driven by electrification, EV adoption, grid expansion, and data centers. On the supply side, tightening inventories and mine disruptions continue to expose the market’s fragility, reinforcing a supportive long-term backdrop,” he added.

Also Read: Commodity Radar: Gold outlook and how to trade amid Fed rate cut expectations, GST boost?

Technical view

Copper has rebounded from its recent selloff, finding strong support near ₹866 and now testing resistance around the ₹890–891 zone, close to the moving average. The latest candles point to short-term recovery, but consolidation near resistance suggests a breakout trigger is needed. Daily Copper Chart

MCX copper investing strategy

Buy on breakout above Rs 893 with a target of Rs 905–910. Place stop-loss at Rs 884.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)